LAWS 


OF 


THE  UNITED  STATES 


KELATING   TO 


CURRENCY,  FINANCE,  AND  BANKING 


FROM  1789  TO  1891. 


COMPILED   BY 

CHARLES  F.  DUNBAR, 

PROFESSOR  OF   POLITICAL  ECONOMY  IN  HARVARD  UNIVERSITY. 


BOSTON: 
GINN    AND    COMPANY. 

1891. 


Copyright,  1891, 
BY  CHARLES  F.  DUD  BAR. 


LIBRARY 

UNIVERSITY  OF  CALIFO 
SANTA  BARBARA 


PKEFACE. 


IN  making  this  collection,  my  object  has  been  to  bring 
within  the  easy  reach  of  students  and  teachers  of  Politi- 
cal Economy  and  History  the  important  parts  of  our 
national  legislation  respecting  Currency,  Coinage,  Loans, 
and  Banking.  For  this  purpose  the  Acts  of  Congress 
have  been  carefully  examined,  and  the  leading  provisions 
upon  these  subjects  are  now  presented  in  their  chrono- 
logical order,  following  with  precision  the  text  given  in 
the  Statutes  at  Large.  Acts  and  provisions  of  less 
consequence  in  financial  history,  but  still  likely  to 
require  occasional  attention,  have  been  abridged  or 
described  in  their  natural  connection.  Finally,  acts  and 
provisions  seldom  referred  to  in  ordinary  use,  as,  for 
example,  those  relating  to  small  loans,  to  banks  in  the 
District  of  Columbia,  and  to  minor  coinage,  together 
with  most  provisions  which  are  strictly  administrative 
or  punitive,  have  been  omitted  altogether,  as  lying  out- 
side of  the  necessary  limits  of  a  book  intended  for  use 
as  a  manual. 

Little  reference  has  been  made  to  the  Revised  Stat- 
utes, the  object  of  the  compilation  not  being  to  present 


IV  PREFACE. 

a  view  of  subsisting  law  at  any  one  period,  past  or 
present ;  but  to  give  the  course  of  legislation,  accurately 
and  with  sufficient  fulness  to  enable  the  student  to  make 
a  thorough  examination  of  it,  without  the  necessity 
of  constant  reference  to  the  formidable  collection  of 
Statutes  at  Large. 
Besides  the  acts  and  resolutions  of  Congress,  treated 

o  f 

as  above  stated,  certain  vetoed  bills  and  a  few  other 
papers  of  historical  importance  have  been  added,  in 
order  to  facilitate  reference  to  a  class  of  documents 
which  the  student  of  political  and  economic  history 
often  finds  as  valuable,  for  purposes  of  study,  as  the 
measures  which  actually  secure  a  place  on  the  pages  of 
the  statute  book. 


CHARLES   F.  DUNBAR. 


HARVARD  UNIVERSITY, 

March  4,  1891. 


CONTENTS. 


Part  I. 

PAGE 

CURRENCY,  FINANCE,  AND  BANKING,  1789-1860    ...        7 


II. 

CURRENCY,  FINANCE,  AND  BANKING,  1860-1891    .     .     .     155 

Part  III. 
COINS  AND  COINAGE,  1789-1891 227 

Part  IV. 
VETOED  BILLS  AND  OTHER  DOCUMENTS  ...         .     .     253 


TABLE  OF  ACTS,  RESOLUTIONS,  AND  DOCUMENTS     .    .     301 


PART    I. 


CURRENCY,  FINANCE,  AND  BANKING. 

1789-1860. 


1789,  Chap.  V.  —  An  Act  to  regulate  the  Collection  of  the 
Duties  imposed  by  law  on  the  tonnage  of  ships  or  ves- 
sels, and  on  goods,  wares,  and  merchandises  imported 
into  the  United  States. 

SEC.  30.  And  be  it  further  enacted,  That  the  duties  and 
fees  to  be  collected  by  virtue  of  this  act,  shall  be  received  in 
gold  and  silver  coin  onl}',  at  the  following  rates,  that  is  to 
say,  the  gold  coins  of  France,  England,  Spain  and  Portugal, 
and  all  other  gold  coin  of  equal  fineness,  at  eighty-nine  cents 
for  every  pennyweight.  The  Mexican  dollar  at  one  hundred 
cents ;  the  crown  of  France  at  one  dollar  and  eleven  cents ; 
the  crown  of  England  at  one  dollar  and  eleven  cents  ;  and  all 
silver  coins  of  equal  fineness  at  one  dollar  and  eleven  cents 

per  ounce. 

[Approved,  July  31,  1789.    1  Statutes  at  Large,  45.] 

1789,  Chap.  XII.  —  An    Act    to    establish    the     Treasury 

Department. 

SECTION  1.  12e  it  enacted  by  the  Senate  and  House  of 
Representatives  of  the  United  States  of  America  in  Congress 
assembled,  That  there  shall  be  a  Department  of  Treasury,  in 
which  shall  be  the  following  officers,  namely  :  a  Secretary  of 
the  Treasury,  to  be  deemed  head  of  the  department ;  a  Comp- 
troller, an  Auditor,  a  Treasurer,  a  Register,  and  an  Assistant 
to  the  Secretary  of  the  Treasury,  which  assistant  shall  be 
appointed  by  the  said  Secretary. 


8  THE   TREASURY   DEPARTMENT.  [1789. 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Secretary  of  the  Treasury  to  digest  and  prepare 
plans  for  the  improvement  and  management  of  the  revenue, 
and  for  the  support  of  public  credit ;  to  prepare  and  report 
estimates  of  the  public  revenue,  and  the  public  expenditures  ; 
to  superintend  the  collection  of  the  revenue  ;  to  decide  on  the 
forms  of  keeping  and  stating  accounts  and  making  returns, 
and  to  grant  under  the  limitations  herein  established,  or  to  be 
hereafter  provided,  all  warrants  for  monies  to  be  issued  from 
the  Treasury,  in  pursuance  of  appropriations  b}'  law ;  to  exe- 
cute such  services  relative  to  the  sale  of  the  lands  belonging 
to  the  United  States,  as  may  be  by  law  required  of  him ;  to 
make  report,  and  give  information  to  either  branch  of  the 
legislature,  in  person  or  in  writing  (as  he  may  be  required), 
respecting  all  matters  referred  to  him  by  the  Senate  or  House 
of  Representatives,  or  which  shall  appertain  to  his  office  ;  and 
generally  to  perform  all  such  services  relative  to  the  finances, 
as  he  shall  be  directed  to  perform. 

SEC.  3.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Comptroller  to  superintend  the  adjustment  and 
preservation  of  the  public  accounts ;  to  examine  all  accounts 
settled  by  the  Auditor,  and  certify  the  balances  arising  thereon 
to  the  Register ;  to  countersign  all  warrants  drawn  by  the 
Secretary  of  the  Treasury,  which  shall  be  warranted  by  law  ; 
to  report  to  the  Secretary  the  official  forms  of  all  papers  to  be 
issued  in  the  different  offices  for  collecting  the  public  revenue, 
and  the  manner  and  form  of  keeping  and  stating  the  accounts 
of  the  several  persons  employed  therein.  He  shall  moreover 
provide  for  the  regular  and  punctual  payment  of  all  monies 
which  may  be  collected,  and  shall  direct  prosecutions  for  all 
delinquencies  of  officers  of  the  revenue,  and  for  debts  that  are, 
or  shall  be  due  to  the  United  States. 

SEC.  4.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Treasurer  to  receive  and  keep  the  monies  of  the 
United  States,  and  to  disburse  the  same  upon  warrants  drawn 
by  the  Secretary  of  the  Treasury,  countersigned  b}'  the  Comp- 
troller, recorded  by  the  Register,  and  not  otherwise  ;  he  shall 
take  receipts  for  all  monies  paid  by  him,  and  all  receipts  for 


1789.]  DUTIES    OF   TREASURY   OFFICERS    DEFINED.  9 

monies  received  by  him  shall  be  endorsed  upon  warrants  signed 
by  the  Secretary  of  the  Treasur}-,  without  which  warrant,  so 
signed,  no  acknowledgment  for  money  received  into  the  public 
Treasury  shall  be  valid.  And  the  said  Treasurer  shall  render 
his  accounts  to  the  Comptroller  quarterly,  (or  oftener  if  re- 
quired,) and  shall  transmit  a  copy  thereof,  when  settled,  to 
the  Secretary  of  the  Treasur}-.  .  .  . 

SEC.  5.  And  be  it  further  enacted,  That  it  shall  be  the 
dut}'  of  the  Auditor  to  receive  all  public  accounts,  and  after 
examination  to  certify  the  balance,  and  transmit  the  accounts 
with  the  vouchers  and  certificate  to  the  Comptroller  for  his 
decision  thereon :  Provided,  That  if  any  person  whose  ac- 
count shall  be  so  audited,  be  dissatisfied  therewith,  he  may 
within  six  months  appeal  to  the  Comptroller  against  such 
settlement. 

SEC.  6.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Register  to  keep  all  accounts  of  the  receipts  and 
expenditures  of  the  public  money,  and  of  all  debts  due  to  or 
from  the  United  States  ;  to  receive  from  the  Comptroller  the 
accounts  which  shall  have  been  finally  adjusted,  and  to  pre- 
serve such  accounts  with  their  vouchers  and  certificates ;  to 
record  all  warrants  for  the  receipt  or  paj-ment  of  monies  at 
the  Treasury,  certify  the  same  thereon,  and  to  transmit  to 
the  Secretary  of  the  Treasury,  copies  of  the  certificates  of 
balances  of  accounts  adjusted  as  is  herein  directed. 

SEC.  7.  And  be  it  further  enacted,  That  whenever  the 
Secretary  shall  be  removed  from  office  03'  the  President  of  the 
United  States,  or  in  any  other  case  of  vacancy  in  the  office  of 
Secretary,  the  Assistant  shall,  during  the  vacancy,  have  the 
charge  and  custod}'  of  the  records,  books,  and  papers  apper- 
taining to  the  said  office. 

[Section  8  forbids  any  person  appointed  to  any  office  instituted  by  this 
act  to  be  concerned  in  trade,  commerce,  navigation,  or  the  purchase  of 
public  property  or  public  securities,  or  to  take  any  emolument  for  trans- 
acting business  in  the  department,  other  than  is  allowed  by  law.] 

[Approved,  September  2,  1789.    1  Statutes  at  Large,  65.] 


10  PROVISION   FOR  THE   FOREIGN   DEBT.  [1790. 

1790,  Chap.  XXXIV.  —  An  Act  making  provision  for  the 
Debt  of  the  United  States. 

WHEREAS,  justice  and  the  support  of  public  credit  require,  that 
provision  should  be  made  for  fulfilling  the  engagements  of  the 
United  States,  in  respect  to  their  foreign  debt,  and  for  funding 
their  domestic  debt  upon  equitable  and  satisfactory  terms: 

SECTION  1.  J3e  it  enacted,  .  .  .  That  reserving  out  of  the 
monies  which  have  arisen  since  the  last  clay  of  December  last 
past,  and  which  shall  hereafter  arise  from  the  duties  on  goods, 
wares  and  merchandise  imported  into  the  United  States,  and 
on  the  tonnage  of  ships  or  vessels,  the  3'eaiiy  sum  of  six 
hundred  thousand  dollars,  or  so  much  thereof  as  ma}-  be  ap- 
propriated from  time  to  time,  towards  the  support  of  the 
government  of  the  United  States,  and  their  common  defence, 
the  residue  of  the  said  monies,  or  so  much  thereof  as  may  be 
necessary,  as  the  same  shall  be  received  in  each  year,  next 
after  the  sum  reserved  as  aforesaid,  shall  be,  and  is  hereby 
appropriated  to  the  payment  of  the  interest  which  shall  from 
time  to  time  become  due  on  the  loans  heretofore  made  by  the 
United  States  in  foreign  countries  ;  and  also  to  the  payment 
of  interest  on  such  further  loans  as  may  be  obtained  for  dis- 
charging the  arrears  of  interest  thereupon,  and  the  whole  or 
any  part  of  the  principal  thereof;  to  continue  so  appropriated 
until  the  said  loans,  as  well  those  already  made  as  those 
which  may  be  made  in  virtue  of  this  act,  shall  be  fully  satis- 
fied, pursuant  to  the  contracts  relating  to  the  same,  an}T  law 
to  the  contrary  notwithstanding.  And  provided,  That  noth- 
ing herein  contained,  shall  be  construed  to  annul  or  alter  any 
appropriation  by  law  made  prior  to  the  passing  of  this  act. 

And  as  new  loans  are  and  will  be  necessaiy  for  the  pay- 
ment of  the  aforesaid  arrears  of  interest,  and  the  instalments 
of  the  principal  of  the  said  foreign  debt  due  and  growing  clue, 
and  ma}T  also  be  found  expedient  for  effecting  an  entire  al- 
teration in  the  state  of  the  same : 

[Section  2  authorizes  the  President  of  the  United  States  to  cause  not 
exceeding  twelve  millions  of  dollars  to  be  borrowed,  for  the  discharge  of 
said  arrears  and  instalments  or  for  paying  off  the  whole  foreign  debt, 


1790.]  DOMESTIC   DEBT   TO    BE   FUNDED.  11 

and  to  make  such  further  contracts  respecting  said  debts  as  may  be  ex- 
pedient, provided  that  no  contract  shall  preclude  the  United  States  from 
reimbursing  within  fifteen  years  any  sum  borrowed.] 

And  whereas  it  is  desirable  to  adapt  the  nature  of  the  provision 
to  be  made  for  the  domestic  debt  to  the  present  circumstances  of 
the  United  States,  as  far  as  it  shall  be  found  practicable,  consist- 
ently with  good  faith  and  the  rights  of  the  creditors  ;  which  can 
only  be  done  by  a  voluntary  loan  on  their  part : 

SEC.  3.  Be  it  therefore  further  enacted,  That  a  loan  to  the 
full  amount  of  the  said  domestic  debt  be,  and  the  same  is 
hereby  proposed  ;  and  that  books  for  receiving  subscriptions 
to  the  said  loan  be  opened  at  the  treasury  of  the  United 
States,  and  by  a  commissioner  to  be  appointed  in  each  of  the 
said  states,  on  the  first  day  of  October  next,  to  continue 
open  until  the  last  day  of  September  following,  inclusively ; 
and  that  the  sums  which  shall  be  subscribed  thereto,  be  pay- 
able in  certificates  issued  for  the  said  debt,  according  to  their 
specie  value,  and  computing  the  interest  upon  such  as  bear 
interest  to  the  last  day  of  December  next,  inclusively ;  which 
said  certificates  shall  be  of  these  several  descriptions,  to  wit : 

Those  issued  by  the  register  of  the  treasury. 

Those  issued  by  the  commissioners  of  loans  in  the  several 
states,  including  certificates  given  pursuant  to  the  act  of  Con- 
gress of  the  second  of  January,  one  thousand  seven  hundred 
and  seventy-nine,  for  bills  of  credit  of  the  several  emissions  of 
the  twentieth  of  May,  one  thousand  seven  hundred  and  sev- 
enty-seven, and  the  eleventh  of  April,  one  thousand  seven 
hundred  and  seventy-eight. 

Those  issued  by  the  commissioners  for  the  adjustment  of 
the  accounts  of  the  quartermaster,  commissary,  hospital, 
clothing,  and  marine  departments. 

Those  issued  by  the  commissioners  for  the  adjustment  of 
accounts  in  the  respective  states. 

Those  issued  by  the  late  and  present  paymaster  general, 
or  commissioner  of  arnry  accounts. 

Those  issued  for  the  payment  of  interest,  commonly  called 
indents  of  interest. 

And  in  the  bills  of  credit  issued  by  the  authority  of  the 


12  MODE   OF   FUNDING.  1790. 

United  States  in  Congress  assembled,  at  the  rate  of  one  hun- 
dred dollars  in  the  said  bills,  for  one  dollar  in  specie. 

SEC.  4.  And  be  it  farther  enacted,  That  for  the  whole  or 
any  part  of  any  sum  subscribed  to  the  said  loan,  by  an}*  per- 
son or  persons,  or  body  politic,  which  shall  be  paid  in  the 
principal  of  the  said  domestic  debt,  the  subscriber  or  sub- 
scribers shall  be  entitled  to  a  certificate,  purporting  that  the 
United  States  owe  to  the  holder  or  holders  thereof,  his,  her, 
or  their  assigns,  a  sum  to  be  expressed  therein,  equal  to  two- 
thirds  of  the  sum  so  paid,  bearing  an  interest  of  six  per 
centum  per  annum,  payable  quarter  3'early,  and  subject  to 
redemption  by  payments  not  exceeding  in  one  3'ear,  on  ac- 
count both  of  principal  and  interest,  the  proportion  of  eight 
dollars  upon  a  hundred  of  the  sum  mentioned  in  such  cer- 
tificate ;  and  to  another  certificate  purporting  that  the  United 
States  owe  to  the  holder  or  holders  thereof,  his,  her,  or  their 
assigns,  a  sum  to  be  expressed  therein,  equal  to  the  propor- 
tion of  thirty-three  dollars  and  one-third  of  a  dollar  upon  a 
hundred  of  the  sum  so  paid,  which  after  the  year  one  thou- 
sand eight  hundred  shall  bear  an  interest  of  six  per  centum 
per  annum,  payable  quarter  yearly,  and  subject  to  redemp- 
tion b}'  payments  not  exceeding  in  one  j'ear,  on  account  both 
of  principal  and  interest,  the  proportion  of  eight  dollars  upon  a 
hundred  of  the  sum  mentioned  in  such  certificate  :  Provided, 
That  it  shall  not  be  understood  that  the  United  States  shall  be 
bound  or  obliged  to  redeem  in  the  proportion  aforesaid  ;  but 
it  shall  be  understood  only  that  they  have  a  right  so  to  do. 

SEC.  5.  And  be  it  further  enacted,  That  for  the  whole  or 
any  part  of  any  sum  subscribed  to  the  said  loan  b}'  an}-  person 
or  persons,  or  body  politic,  which  shall  be  paid  in  the  interest 
of  the  said  domestic  debt,  computed  to  the  said  last  day  of 
December  next,  or  in  the  said  certificates  issued  in  payment 
of  interest,  commonly  called  indents  of  interest,  the  subscriber 
or  subscribers  shall  be  entitled  to  a  certificate  purporting  that 
the  United  States  owe  to  the  holder  or  holders  thereof,  his, 
her  or  their  assigns,  a  sum  to  be  specified  therein,  equal  to 
that  b}*  him,  her  or  them  so  paid,  bearing  an  interest  of  three 
per  centum  per  annum,  payable  quarter  yearly,  and  subject 


1790.]  DETAILS   OF  THE   FUNDING   OPERATION.  13 

to  redemption  by  payment  of  the  sum  specified  therein,  when- 
ever provision  shall  be  made  by  law  for  that  purpose. 

SEC.  6.  And  be  it  further  enacted,  That  a  commissioner  be 
appointed  for  each  state,  to  reside  therein,  whose  duty  it  shall 
be  to  superintend  the  subscriptions  to  the  said  loan  ;  to  open 
books  for  the  same  ;  to  receive  the  certificates  which  shall  be 
presented  in  payment  thereof ;  to  liquidate  the  specie  value  of 
such  of  them  as  shall  not  have  been  before  liquidated  ;  to  issue 
the  certificates  above  mentioned  in  lieu  thereof,  according  to 
the  terms  of  each  subscription  ;  to  enter  in  books  to  be  by  him 
kept  for  that  purpose,  credits  to  the  respective  subscribers  to 
the  said  loan  for  the  sums  to  which  they  shall  be  respectively 
entitled  ;  to  transfer  the  said  credits  upon  the  said  books  from 
time  to  time  as  shall  be  requisite  ;  to  pay  the  interest  there- 
upon as  the  same  shall  become  due,  and  generally  to  observe 
and  perform  such  directions  and  regulations  as  shall  be  pre- 
scribed to  him  by  the  Secretary  of  the  Treasury,  touching  the 
execution  of  his  office. 

[Section  7  provides  that  the  stock  created  in  pursuance  of  this  act  shall 
be  transferable  only  on  the  books  of  the  Treasury  or  of  the  commissioners 
in  which  it  is  recorded  at  the  time  of  transfer,  by  the  owner  or  by  his  at- 
torney ;  but  stock  may  be  transferred  by  the  Secretary  of  the  Treasury 
from  the  books  of  one  office  to  those  of  another,  by  request  of  the  owner. 

Section  8  provides  for  the  payment  of  the  interest,  to  be  made  quarterly 
on  the  last  days  of  March,  June,  September,  and  December  in  each  year. 

Sections  9  and  10  provide  that  nothing  in  this  act  shall  impair  the 
rights  of  creditors  who  do  not  subscribe  to  the  loan,  but  that  they  shall 
receive  to  the  end  of  1791  the  same  rate  of  interest  as  is  paid  to  subscrib- 
ing creditors,  and  payable  at  the  same  times  and  places.  But  as  some  of 
the  certificates  outstanding  have  not  been  liquidated  to  specie  value,  and 
as  some  have  been  counterfeited,  such  creditors  as  do  not  hold  certificates 
issued  by  the  Register  of  the  Treasury,  in  order  to  be  entitled  to  interest, 
are  required  to  present  them  before  June  1, 1791,  to  be  exchanged  for  new 
certificates  specifying  the  specie  amounts  of  debt  and  otherwise  like  those 
heretofore  issued  by  the  Register,  and  made  transferable  like  those  issued 
to  subscribers  under  this  act. 

Sections  11  and  12  prescribe  the  salaries  to  be  paid  to  the  commission- 
ers, and  provide  for  their  oath  of  office  and  official  bonds.] 

And  whereas  a  provision  for  the  debts  of  the  respective  states  by 
the  United  States,  would  be  greatly  conducive  to  an  orderly, 
economical,  and  effectual  arrangement  of  the  public  finances: 


14  STATE    DEBTS   TO    BE    ASSUMED.  [1790. 

SEC.  13.  JBe  it  therefore  further  enacted,  That  a  loan  be 
proposed  to  the  amount  of  twent3*-one  million  and  five  hun- 
dred thousand  dollars,  and  that  subscriptions  to  the  said  loan 
be  received  at  the  same  times  and  places,  and  by  the  same, 
persons,  as  in  respect  to  the  loan  herein  before  proposed  con- 
cerning the  domestic  debt  of  the  United  States.  And  that 
the  sums  which  shall  be  subscribed  to  the  said  loan,  shall  be 
payable  in  the  principal  and  interest  of  the  certificates  or  notes, 
which  prior  to  the  first  day  of  January  last,  were  issued  by  the 
respective  states,  as  acknowledgments  or  evidences  of  debts 
by  them  respectively  owing,  except  certificates  issued  by  the 
commissioners  of  army  accounts  in  the  state  of  North  Caro- 
lina, in  the  year  one  thousand  seven  hundred  and  eighty-six. 

Provided,  That  no  greater  sum  shall  be  received  in  the  cer- 
tificates of  any  state  than  as  follows  ;  that  is  to  say : 

In  those  of  New  Hampshire,  three  hundred  thousand  dollars. 

In  those  of  Massachusetts,  four  million  dollai's. 

In  those  of  Rhode  Island  and  Providence  Plantations,  two 
hundred  thousand  dollars. 

In  those  of  Connecticut,  one  million  six  hundred  thousand 
dollars. 

In  those  of  New  York,  one  million  two  hundred  thousand 
dollars. 

In  those  of  New  Jersey,  eight  hundred  thousand  dollars. 

In  those  of  Pennsylvania,  two  million  two  hundred  thousand 
dollars. 

In  those  of  Delaware,  two  hundred  thousand  dollars. 

In  those  of  Maryland,  eight  hundred  thousand  dollars. 

In  those  of  Virginia,  three  million  five  hundred  thousand 
dollars. 

In  those  of  North  Carolina,  two  million  four  hundred  thou- 
sand dollars. 

In  those  of  South  Carolina,  four  million  dollars. 

In  those  of  Georgia,  three  hundred  thousand  dollars. 

And  provided,  That  no  such  certificate  shall  be  received, 
which  from  the  tenor  thereof,  or  from  any  public  record,  act, 
or  document,  shall  appear  or  can  be  ascertained  to  have  been 
issued  for  any  purpose,  other  than  compensations  and  expendi- 


1790.]  MODE   OF  ASSUMING.  15 

tures  for  services  or  supplies  towards  the  prosecution  of  the 
late  war,  and  the  defence  of  the  United  States,  or  of  some 
part  thereof  during  the  same. 

SEC.  14.  Provided  also,  and  be  it  further  enacted,  That 
if  the  total  amount  of  the  sums  which  shall  be  subscribed  to 
the  said  loan  in  the  debt  of  any  state,  within  the  time  limited 
for  receiving  subscriptions  thereto,  shall  exceed  the  sum  by 
this  act  allowed  to  be  subscribed  within  such  state,  the  cer- 
tificates and  credits  granted  to  the  respective  subscribers  shall 
bear  such  proportion  to  the  sums  by  them  respectively  sub- 
scribed, as  the  total  amount  of  the  said  sums  shall  bear  to  the 
whole  sum  so  allowed  to  be  subscribed  in  the  debt  of  such 
state  within  the  same.  And  every  subscriber  to  the  said  loan 
shall,  at  the  time  of  subscribing,  deposit  with  the  commission- 
ers the  certificates  or  notes  to  be  loaned  by  him. 

SEC.  15.  And  be  it  further  enacted,  That  for  two-thirds 
of  any  sum  subscribed  to  the  said  loan,  b}*  any  person  or 
persons,  or  body  politic,  which  shall  be  paid  in  the  principal 
and  interest  of  the  certificates  or  notes  issued  as  aforesaid  by 
the  respective  states,  the  subscriber  or  subscribers  shall  be 
entitled  to  a  certificate,  purporting  that  the  United  States  owe 
to  the  holder  or  holders  thereof,  or  his,  her  or  their  assigns,  a 
sum  to  be  expressed  therein,  equal  to  two-thirds  of  the  afore- 
said two-thirds,  bearing  an  interest  of  six  per  centum  per 
annum,  payable  quarter  yearly,  and  subject  to  redemption  by 
payments,  not  exceeding  in  one  year,  on  account  both  of  prin- 
cipal and  interest,  the  proportion  of  eight  dollars  upon  a  hun- 
dred of  the  sum  mentioned  in  such  certificate  ;  and  to  another 
certificate,  purporting  that  the  United  States  owe  to  the  holder 
or  holders  thereof,  his,  her  or  their  assigns,  a  sum  to  be  ex- 
pressed therein,  equal  to  the  proportion  of  thirty-three  dollars 
and  one-third  of  a  dollar  upon  a  hundred,  of  the  said  two- 
thirds  of  such  sum  so  subscribed,  which,  after  the  year  one 
thousand  eight  hundred  shall  bear  an  interest  of  six  per  centum 
per  annum,  payable  quarter  yearly,  and  subject  to  redemption 
by  payments,  not  exceeding  in  one  year,  on  account  both  of 
principal  and  interest,  the  proportion  of  eight  dollars  upon  a 
hundred  of  the  sum  mentioned  in  such  certificate ;  and  that 


16  FURTHER   DETAILS    OF   ASSUMPTION.  [1790. 

for  the  remaining  third  of  any  sum  so  subscribed,  the  sub- 
scriber or  subscribers  shall  be  entitled  to  a  certificate,  purport- 
ing that  the  United  States  owe  to  the  holder  or  holders  thereof, 
his,  her  or  their  assigns,  a  sum  to  be  expressed  therein,  equal 
to  the  said  remaining  third,  bearing  an  interest  of  three  per 
centum  per  annum,  payable  quarter  yearly,  and  subject  to  re- 
demption by  payment  of  the  sum  specified  therein  whenever 
provision  shall  be  made  by  law  for  that  purpose. 

SEC.  16.  And  be  it  further  enacted,  That  the  interest  upon 
the  certificates  which  shall  be  received  in  payment  of  the  sums 
subscribed  towards  the  said  loan,  shall  be  computed  to  the  last 
day  of  the  year  one  thousand  seven  hundred  and  ninety-one, 
inclusively ;  and  the  interest  upon  the  stock  which  shall  be 
created  by  virtue  of  the  said  loan  shall  commence  or  begin  to 
accrue  on  the  first  day  of  the  }-ear  one  thousand  seven  hundred 
and  ninety-two,  and  shall  be  payable  quarter  yearty,  at  the 
same  time,  and  in  like  manner,  as  the  interest  on  the  stock  to 
be  created  by  virtue  of  the  loan  above  proposed  in  the  domes- 
tic debt  of  the  United  States. 

SEC.  17.  And  be  it  further  enacted,  That  if  the  whole  sum 
allowed  to  be  subscribed  in  the  debt  or  certificates  of  any 
state  as  aforesaid,  shall  not  be  subscribed  within  the  time  for 
that  purpose  limited,  such  state  shall  be  entitled  to  receive, 
and  shall  receive  from  the  United  States,  an  interest  per 
centum  per  annum,  upon  so  much  of  the  said  sum  as  shall 
not  have  been  so  subscribed,  equal  to  that  which  would  have 
accrued  on  the  deficienc}',  had  the  same  been  subscribed  in 
trust  for  the  non-subscribing  creditors  of  such  state,  who  are 
holders  of  certificates  or  notes  issued  on  account  of  services 
or  supplies  towards  the  prosecution  of  the  late  war,  and  the 
defence  of  the  United  States  or  of  some  part  thereof,  to  be 
paid  in  like  manner  as  the  interest  on  the  stock  which  may 
be  created  by  virtue  of  the  said  loan,  and  to  continue  until 
there  shall  be  a  settlement  of  accounts  between  the  United 
States  and  the  individual  states  ;  and  in  case  a  balance  shall 
then  appear  in  favor  of  such  state,  until  provision  shall  be 
made  for  the  said  balance. 


1790.]  REVENUES  PLEDGED  FOR  PAYMENT  OF  INTEREST.     17 

But  as  certain  states  have  respectively  issued  their  own  certificates, 
in  exchange  for  those  of  the  United  States,  whereby  it  might 
happen  that  interest  might  be  twice  payable  on  the  same  sums: 

SEC.  18.  Be  it  further  enacted,  That  the  payment  of  in- 
terest whether  to  states  or  to  individuals,  in  respect  to  the 
debt  of  any  state,  by  which  such  exchange  shall  have  been 
made,  shall  be  suspended,  until  it  shall  appear  to  the  satis- 
faction of  the  secretary  of  the  treasury,  that  certificates  is- 
sued for  that  purpose  by  such  state  have  been  re-exchanged 
or  redeemed,  or  until  those  which  shall  not  have  been  re- 
exchanged  or  redeemed  shall  be  surrendered  to  the  United 
States. 

SEC.  19.  And  be  it  further  enacted,  That  so  much  of  the 
debt  of  each  state  as  shall  be  subscvibed  to  the  said  loan, 
and  the  monies  (if  any)  that  shall  be  advanced  to  the  same 
pursuant  to  this  act,  shall  be  a  charge  against  such  state,  in 
account  with  the  United  States. 

SEC.  20.  And  be  it  further  enacted,  That  the  monies  aris- 
ing under  the  revenue  laws,  which  have  been  or  during  the 
present  session  of  Congress  may  be  passed,  or  so  much 
thereof  as  ma}'  be  necessary,  shall  be  and  are  hereby  pledged 
and  appropriated  for  the  payment  of  the  interest  on  the  stock 
which  shall  be  created  by  the  loans  aforesaid,  pursuant  to 
the  provisions  of  this  act,  first  paying  that  which  shall  arise 
on  the  stock  created  by  virtue  of  the  said  first-mentioned 
loan,  to  continue  so  pledged  and  appropriated,  until  the  final 
redemption  of  the  said  stock,  any  law  to  the  contrary  not- 
withstanding, subject  nevertheless  to  such  reservations  and 
priorities  as  may  be  requisite  to  satisfy  the  appropriations 
heretofore  made,  and  which  during  the  present  session  of 
Congress  may  be  made  by  law,  including  the  sums  herein 
before  reserved  and  appropriated ;  and  to  the  end  that  the 
said  monies  may  be  inviolably  applied  in  conformity  to  this 
act,  and  may  never  be  diverted  to  any  other  purpose,  an 
account  shall  be  kept  of  the  receipts  and  disposition  thereof, 
separate  and  distinct  from  the  product  of  any  other  duties, 
imposts,  excises  and  taxes  whatsoever,  except  such  as  may 
be  hereafter  laid,  to  make  good  any  deficiency  which  may  be 

2 


18      LANDS  PLEDGED  FOR  PAYMENT  OP  PKINCIPAL.  [1790. 

found  in  the  product  thereof  towards  satisfying  the  interest 
aforesaid. 

SEC.  21.  And  be  it  further  enacted.  That  the  faith  of  the 
United  States  be,  and  the  same  is  hereby  pledged  to  provide 
and  appropriate  hereafter  such  additional  and  permanent 
funds  as  may  be  requisite  towards  supplying  any  such  defi- 
ciency, and  making  full  provision  for  the  payment  of  the 
interest  which  shall  accrue  on  the  stock  to  be  created  by  vir- 
tue of  the  loans  aforesaid,  in  conformity  to  the  terms  thereof 
respectively,  and  according  to  the  tenor  of  the  certificates  to 
be  granted  for  the  same  pursuant  to  this  act. 

SEC.  22.  And  be  it  further  enacted,  That  the  proceeds  of 
the  sales  which  shall  be  made  of  lands  in  the  western  terri- 
toiy,  now  belonging,  or  that  ma}-  hereafter  belong  to  the 
United  States,  shall  be,  and  are  hereby  appropriated  towards 
sinking  or  discharging  the  debts,  for  the  payment  whereof 
the  United  States  now  are,  or  by  virtue  of  this  act  may  be 
holden,  and  shall  be  applied  solely  to  that  use  until  the  said 
debts  shall  be  fully  satisfied. 

[Approved  August  4,  1790.     1  Statutes  at  Large,  138.] 

NOTE.  —  By  a  series  of  acts,  beginning  with  that  of  May  8,  1792,  1 
Statutes  at  Large,  279,  the  time  allowed  for  subscriptions  under  section 
3  above  was  extended  to  December  31,  1797,  giving  to  non-subscribing 
creditors  a  rate  of  interest  equal  to  tliat  which  would  be  payable  to 
them  as  subscribing  creditors.  See  the  act  of  March  3,  1797,  1  Statutes 
at  Large,  516. 

The  time  for  receiving  upon  loan  the  debts  of  the  States  under  section 
13  above  was  also  extended  by  the  act  of  May  8,  1792,  to  March  1,  1793, 
"Provided  always,  that  the  commissioners  of  loans  for  North  Carolina 
shall  not  be  allowed  to  receive  any  certificate  issued  by  Patrick  Travers, 
commissioner  of  Cumberland  County,  or  by  the  commissioners  of  army 
accounts  at  Warrenton." 

1790,  Chap.  XXXVIII.  —  An  Act  to  provide  more  effectu- 
ally for  the  settlement  of  the  Accounts  between  the  United 
States  and  the  individual  States. 

SECTION  1.  Be  it  enacted,  .  .  .  That  a  board,  to  consist  of 
three  commissioners,  be,  and  hereby  is  established  to  settle 
the  accounts  between  the  United  States,  and  the  individual 


1790.]  ACCOUNTS   WITH   STATES   TO   BE   SETTLED.  19 

states  ;  and  the  determination  of  a  majority  of  the  said  com- 
missioners on  the  claims  submitted  to  them,  shall  be  final  and 
conclusive  ;  and  they  shall  have  power  to  employ  such  num- 
ber of  clerks  as  they  may  find  necessary. 

[Section  2  provides  for  the  oath  of  office  to  be  taken  by  the  commis- 
sioners, and  for  their  payment,  at  the  rate  of  two  thousand  two  hundred 
and  fifty  dollars  per  annum  for  each.]  * 

SEC.  3.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  said  commissioners  to  receive  and  examine  all 
claims  which  shall  be  exhibited  to  them  before  the  first  day 
of  July,  one  thousand  seven  hundred  and  ninety-one,  and  to 
determine  on  all  such  as  shall  have  accrued  for  the  general 
or  particular  defence  during  the  war,  and  on  the  evidence 
thereof,  according  to  the  principles  of  general  equity  (al- 
though such  claims  may  not  be  sanctioned  by  the  resolves  of 
Congress,  or  supported  by  regular  vouchers),  so  as  to  provide 
for  the  final  settlement  of  all  accounts  between  the  United 
States  and  the  states  individually ;  but  no  evidence  of  a 
claim  heretofore  admitted  by  a  commissioner  of  the  United 
States  for  any  state  or  district,  shall  be  subject  to  such  ex- 
amination ;  nor  shall  the  claim  of  an}*  citizen  be  admitted  as 
a  charge  against  the  United  States  in  the  account  of  any 
state,  unless  the  same  was  allowed  by  such  state  before  the 
twenty-fourth  day  of  September,  one  thousand  seven  hundred 
and  eighty-eight. 

SEC.  4.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  said  commissioners  to  examine  and  liquidate  to 
specie  value,  on  principles  of  equit}',  the  credits  and  debits 
of  the  states  already  on  the  books  of  the  treasury  for  bills  of 
credit  subsequent  to  the  eighteenth  of  March,  one  thousand 
seven  hundred  and  eighty. 

SEC.  5.  And  be  it  further  enacted,  That  the  commissioners 
shall  debit  each  state  with  all  advances  which  have  been,  or 
may  be  made  to  it  by  the  United  States,  and  with  the  interest 
thereon  to  the  last  day  of  the  year  one  thousand  seven  hun- 
dred and  eighty-nine,  and  shall  credit  each  state  for  its  dis- 
bursements and  advances  on  the  principles  contained  in  the 


20          BALANCES  OF  ACCOUNTS  WITH  STATES.      [1790. 

third  section  of  this  act,  with  interest  to  the  day  aforesaid, 
and  having  struck  the  balance  due  to  each  state,  shall  find 
the  aggregate  of  all  the  balances,  which  aggregate  shall  be 
apportioned  between  the  states  agreeably  to  the  rule  herein- 
after given  ;  and  the  difference  between  such  apportionments, 
and  the  respective  balances,  shall  be  carried  in  a  new  account 
to  the  debit  or  credit  of  th*  states  respectively,  as  the  case 
may  be. 

SEC.  6.  And  be  it  further  enacted,  That  the  rule  for  ap- 
portioning to  the  states  the  aggregate  of  the  balances  first 
above  mentioned,  shall  be  the  same  that  is  prescribed  b\-  the 
constitution  of  the  United  States,  for  the  apportionment  of 
representation  and  direct  taxes,  and  according  to  the  first 
enumeration  which  shall  be  made. 

SEC.  7.  And  be  it  further  enacted,  That  the  states  who 
shall  have  balances  placed  to  their  credit  on  the  books  of  the 
treasury  of  the  United  States,  shall,  within  twelve  months 
after  the  same  shall  have  been  so  credited,  be  entitled  to 
have  the  same  funded  upon  the  same  terms  with  the  other 
part  of  the  domestic  debt  of  the  United  States  ;  but  the  bal- 
ances so  credited  to  any  state  shall  not  be  transferable. 

[Section  8  relates  to  the  compensation  of  the  clerks  employed  by  the 
commissioners.] 

SEC.  9.  And  be  it  further  enacted,  That  the  powers  of  the 
said  commissioners  shall  continue  until  the  first  day  of  July, 
one  thousand  seven  hundred  and  ninety-two,  unless  the  busi- 
ness shall  be  sooner  accomplished. 

[Approved,  August  5,  1790.     1  Statutes  at  Large,  178.] 

NOTE. — The  time  for  settling  the  accounts  under  this  act  was  ex- 
tended to  July  1,  1793,  by  the  Act  of  January  23,  1792,  1  Statutes  at 
Large,  229. 

1790,  Chap.  XL VII.  —  An  Act  making  Provision  for  the 
Reduction  of  the  Public  Debt. 

IT  being  desirable  by  all  just  and  proper  means,  to  effect  a  reduction 
of  the  amount  of  the  public  debt,  and  as  the  application  of  such 
surplus  of  the  revenue  as  may  remain  after  satisfying  the  purposes 


1790.]  SINKING   FUND   PURCHASES.  21 

for  which  appropriations  shall  have  been  made  by  law,  will  not 
only  contribute  to  that  desirable  end,  but  will  be  beneficial  to  the 
creditors  of  the  United  States,  by  raising  the  price  of  their  stock, 
and  be  productive  of  considerable  saving  to  the  United  States: 

SECTION  1.  2ie  it  enacted,  .  .  .  That  all  such  surplus  of 
the  product  of  the  duties  on  goods,  wares,  and  merchandise 
imported,  and  on  the  tonnage  of  ships  or  vessels  to  the  last 
day  of  December  next,  inclusively,  as  shall  remain  after  sat- 
isfying the  several  purposes  for  which  appropriations  shall 
have  been  made  by  law  to  the  end  of  the  present  session, 
shall  be  applied  to  the  purchase  of  the  debt  of  the  United 
States,  at  its  market  price,  if  not  exceeding  the  par  or  true 
value  thereof. 

SEC.  2.  And  be  it  further  enacted,  That  the  purchases  to 
be  made  of  the  said  debt,  shall  be  made  under  the  direction  of 
the  President  of  the  Senate,  the  Chief  Justice,  the  Secretary 
of  State,  the  Secretary  of  the  Treasury,  and  the  Attorney 
General  for  the  time  being ;  and  who,  or  any  three  of  whom, 
with  the  approbation  of  the  President  of  the  United  States, 
shall  cause  the  said  purchases  to  be  made  in  such  manner  and 
under  such  regulations  as  shall  appear  to  them  best  calculated 
to  fulfil  the  intent  of  this  act :  Provided,  That  the  same  be 
made  openly,  and  with  due  regard  to  the  equal  benefit  of  the 
several  states  :  And  provided further •,  That  to  avoid  all  risk 
or  failure,  or  delay  in  the  pa3'ment  of  interest  stipulated  to  be 
paid  for  and  during  the  year  one  thousand  seven  hundred  and 
ninety-one,  by  the  act  intituled  "An  act  making  provision  for 
the  debt  of  the  United  States,"  such  reservations  shall  be  made 
of  the  surplus  as  may  be  necessary  to  make  good  the  said  pay- 
ments,  as  they  shall  respectively  become  due,  in  case  of  defi- 
ciency in  the  amount  of  the  receipts  into  the  treasury  during 
the  said  year,  on  account  of  the  duties  on  goods,  wares,  and 
merchandise  imported,  and  the  tonnage  of  ships  or  vessels, 
after  the  last  day  of  December  next. 

SEC.  3.  And  be  it  further  enacted,  That  accounts  of  the 
application  of  the  said  monies  shall  be  rendered  for  settle- 
ment as  other  public  accounts,  accompanied  with  returns  of 
the  amount  of  the  said  debt  purchased  therewith,  at  the  end 


22  BANK   OF   THE   UNITED    STATES    ESTABLISHED.        [1791. 

of  every  quarter  of  a  year,  to  be  computed  from  the  time  of 
commencing  the  purchases  aforesaid  :  and  that  a  full  and  ex- 
act report  of  the  proceedings  of  the  said  five  persons,  or  any 
three  of  them,  including  a  statement  of  the  disbursements  and 
purchases  made  under  their  direction,  specifying  the  times 
thereof,  the  prices  at  which,  and  the  parties  from  whom  the 
same  may  be  made,  shall  be  laid  before  Congress,  within  the 
first  fourteen  days  of  each  session  which  ma}'  ensue  the  pres- 
ent, during  the  execution  of  their  said  trust. 

SEC.  4.  And  be  it  further  enacted,  That  the  President  of 
the  United  States  be,  and  he  is  hereby  authorized  to  cause 
to  be  borrowed,  on  behalf  of  the  United  States,  a  sum  or  sums 
not  exceeding  in  the  whole  two  millions  of  dollars,  at  an  inter- 
est not  exceeding  five  per  cent.,  and  that  the  sum  or  sums  so 
borrowed  be  also  applied  to  the  purchase  of  the  said  debt  of 
the  United  States,  under  the  like  direction,  in  the  like  man- 
ner, and  subject  to  the  like  regulations  and  restrictions  with 
the  surplus  aforesaid :  Provided,  That  out  of  the  interest 
arising  on  the  debt  to  be  purchased  in  manner  aforesaid,  there 
shall  be  appropriated  and  applied  a  sum  not  exceeding  the  rate 
of  eight  per  centum  per  annum  on  account  both  of  principal 
and  interest  towards  the  repayment  of  the  two  millions  of 
dollars  so  to  be  borrowed. 

[Approved,  Aug  12,  1790.    1  Statutes  at  Large,  186.] 

1790-91,  Chap.  X.  —  An  Act  to  incorporate  the  subscribers 
to  the  Bank  of  the  United  States. 

WHEREAS  it  is  conceived  that  the  establishment  of  a  bank  for  the 
United  States,  upon  a  foundation  sufficiently  extensive  to  answer 
the  purposes  intended  thereby,  and  at  the  same  time  upon  the 
principles  which  afford  adequate  security  for  an  upright  and  pru- 
dent administration  thereof,  will  be  very  conducive  to  the  success- 
ful conducting  of  the  national  finances;  will  tend  to  give  facility 
to  the  obtaining  of  loans,  for  the  use  of  the  government,  in  sud- 
den emergencies;  and  will  be  productive  of  considerable  advantage 
to  trade  and  industry  in  general:  Therefore, 

SECTION  1.  Be  it  enacted,  .  .  .  That  a  bank  of  the  United 
States  shall  be  established  ;  the  capital  stock  whereof  shall  not 


1791.]  BANK  ACT:  MODE  OF  SUBSCRIPTION.  23 

exceed  ten  millions  of  dollars,  divided  into  twenty-five  thou- 
sand shares,  each  share  being  four  hundred  dollars  ;  and  that 
subscriptions,  towards  constituting  the  said  stock,  shall,  on 
the  first  Monday  of  April  next,  be  opened  at  the  city  of  Phil- 
adelphia, under  the  superintendence  of  such  persons,  not  less 
than  three,  as  shall  be  appointed  for  that  purpose  by  the  Presi- 
dent of  the  United  States  (who  is  hereby  empowered  to  ap- 
point the  said  persons  accordingly)  ;  which  subscriptions  shall 
continue  open,  until  the  whole  of  the  said  stock  shall  have 
been  subscribed. 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  any  person,  co-partnership,  or  body  politic,  to  subscribe 
for  such  or  so  many  shares,  as  he,  she,  or  they  shall  think  fit, 
not  exceeding  one  thousand,  except  as  shall  be  hereafter  di- 
rected relatively  to  the  United  States ;  and  that  the  sums  re- 
spectively subscribed,  except  on  behalf  of  the  United  States, 
shall  be  payable  one-fourth  in  gold  and  silver,  and  three- 
fourths  in  that  part  of  the  public  debt,  which,  according  to 
the  loan  proposed  in  the  fourth  and  fifteenth  sections  of  the 
act  entitled  "An  act  making  provision  for  the  debt  of  the 
United  States,"  shall  bear  an  accruing  interest,  at  the  time 
of  payment,  of  six  per  centum  per  annum,  and  shall  also  be 
payable  in  four  equal  parts,  in  the  aforesaid  ratio  of  specie  to 
debt,  at  the  distance  of  six  calendar  months  from  each  other", 
the  first  whereof  shall  be  paid  at  the  time  of  subscription. 

[Section  3  makes  the  subscribers  a  corporation  by  the  name  of  "The 
President,  Directors  and  Company  of  the  Bank  of  the  United  States,"  to 
continue  until  March  4,  1811 ;  and  empowers  them  to  hold  property  not 
exceeding  fifteen  millions  of  dollars,  including  the  amount  of  their  capital 
stock,  and  to  make  all  convenient  regulations,  and  to  do  all  necessary 
things,  subject  to  the  limitations  and  provisions  of  this  act. 

Section  4  provides  for  the  annual  election  of  twenty-five  directors,  and 
requires  the  directors  to  choose  one  of  their  number  as  president. 

Section  5  requires  that  as  soon  as  four  hundred  thousand  dollars,  in 
gold  and  silver,  shall  have  been  received  from  the  subscribers,  a  time 
shall  be  fixed  for  the  election  of  directors,  and  the  operations  of  the  bank 
shall  then  begin  at  the  city  of  Philadelphia. 

Section  6  empowers  the  directors  to  employ  the  necessary  officers, 
clerks,  and  servants,  and  to  govern  the  affairs  of  the  corporation.] 

SEC.  7.  And  be  it  further  enacted,  That  the  following 


24  BANK  ACT:  FUNDAMENTAL  ARTICLES.  [1791. 

rules,  restrictions,  limitations  and  provisions,  shall  form  and 
be  fundamental  articles  of  the  constitution  of  the  said  cor- 
poration, viz.  : 

I.  The  number  of  votes  to  which  each  stockholder  shall  be 
entitled,  shall  be  according  to  the  number  of  shares  he  shall 
hold,  in  the  proportions  following :  That  is  to  say,  for  one 
share,  and  not  more  than  two  shares,  one  vote  :   for  every 
two  shares  above  two,  and  not  exceeding  ten,  one  vote  :   for 
every  four  shares  above  ten,  and  not  exceeding  thirty,  one 
vote :  for  every  six  shares  above  thirty,  and  not  exceeding 
sixty,  one  vote  :   for  every  eight  shares  above  sixty,  and  not 
exceeding  one  hundred,  one  vote :  and  for  eveiy  ten  shares 
above  one  hundred,  one  vote:  —  But  no  person,  co-partner- 
ship, or  body  politic  shall  be  entitled  to  a  greater  number  than 
thirty  votes.     And  after  the  first  election,  no  share  or  shares 
shall  confer  a  right  of  suffrage,  which  shall  not  have  been 
holden  three  calendar  months  previous  to  the  day  of  election. 
Stockholders  actually  resident  within  the  United  States,  and 
none  other,  may  vote  in  elections  by  proxy. 

II.  Not  more  than  three-fourths  of  the  directors  in  office, 
exclusive  of  the  president,  shall  be  eligible  for  the  next  suc- 
ceeding year :  but  the  director,  who  shall  be  president  at  the 
time  of  an  election,  may  always  be  re-elected. 

III.  None  but  a  stockholder,  being  a  citizen  of  the  United 
States,  shall  be  eligible  as  a  director. 

IV.  No  director  shall  be  entitled  to  an}-  emolument,  unless 
the  same  shall  have  been  allowed  by  the  stockholders  at  a 
general  meeting.     The  stockholders  shall  make  such  compen- 
sation to  the  president,  for  his  extraordinary  attendance  at 
the  bank,  as  shall  appear  to  them  reasonable. 

V.  Not  less  than  seven  directors  shall  constitute  a  board 
for  the  transaction  of  business,  of  whom  the  president  shall 
always  be  one,  except  in  case  of  sickness,  or  necessary  ab- 
sence ;  in  which  case  his  place  may  be  supplied  by  any  other 
director,  whom  he,  by  writing  under  his  hand,  shall  nominate 
for  the  purpose. 

VI.  Any  number  of  stockholders,  not  less  than  sixt}*,  who, 
together,  shall  be  proprietors  of  two  hundred  shares  or  up- 


1791.]  BANK  ACT:  FUNDAMENTAL  ARTICLES.  25 

wards,  shall  have  power  at  anytime  to  call  a  general  meeting 
of  the  stockholders,  for  purposes  relative  to  the  institution, 
giving  at  least  ten  weeks'  notice,  in  two  public  gazettes  of  the 
place  where  the  bank  is  kept,  and  specifying,  in  such  notice, 
the  object  or  objects  of  such  meeting. 

VII.  Every  cashier  or  treasurer,  before  he  enters  upon  the 
duties  of  his  office,  shall  be  required  to  give  bond,  with  two 
or  more  sureties,  to  the  satisfaction  of  the  directors,  in  a  sum 
not  less  than  fifty  thousand  dollars,  with  condition  for  his 
good  behavior. 

VIII.  The  lands,  tenements  and  hereditaments  which  it  shall 
be  lawful  for  the  said  corporation  to  hold,  shall  be  only  such 
as  shall  be  requisite  for  its  immediate  accommodation  in  re- 
lation to  the  convenient  transacting  of  its  business,  and  such 
as  shall  have  been  bonafide  mortgaged  to  it  by  way  of  secu- 
rity, or  conveyed  to  it  in  satisfaction  of  debts  previously  con- 
tracted in  the  course  of  its  dealings,  or  purchased  at  sales 
upon  judgments  which  shall   have   been  obtained  for  such 
debts. 

IX.  The  total  amount  of  the  debts,  which  the  said  corpora- 
tion shall  at  any  time  owe,  whether  by  bond,  bill,  note,  or 
other  contract,  shall  not  exceed  the  sum  of  ten  millions  of 
dollars,  over  and  above  the  monies  then  actually  deposited 
in  the  bank  for  safe-keeping,  unless  the  contracting  of  any 
greater  debt  shall  have  been  previously  authorized  b}-  a  law 
of  the  United  States.     In  case  of  excess,  the  directors,  under 
whose  administration  it  shall  happen,  shall  be  liable  for  the 
same,  in  their  natural  and  private  capacities  ;  and  an  action 
of  debt  ma}*,  in  such  case,  be  brought  against  them,  or  any 
of  them,  their  or  any  of  their  heirs,  executors,  or  administra- 
tors, in  an}-  court  of  record  of  the  United  States,  or  of  either 
of  them,  by  an}'  creditor  or  creditors  of  the  said  corporation, 
and  may  be  prosecuted  to  judgment  and  execution  ;  any  con- 
dition, covenant,  or  agreement  to  the  contrary  notwithstand- 
ing.    But  this  shall   not  be   construed  to  exempt  the  said 
corporation,  or  the  lands,  tenements,  goods  or  chattels  of 
the  same,  from  being  also  liable  for  and  chargeable  with  the 
said  excess.     Such  of  the  said  directors,  who  may  have  been 


26  BANK  ACT:  FUNDAMENTAL  ARTICLES.  [1791. 

absent  when  the  said  excess  was  contracted  or  created,  or 
who  may  have  dissented  from  the  resolution  or  act  whereby 
'the  same  was  so  contracted  or  created,  may  respectively  ex- 
onerate themselves  from  being  so  liable,  by  forthwith  giving 
notice  of  the  fact,  and  of  their  absence  or  dissent,  to  the 
President  of  the  United  States,  and  to  the  stockholders,  at 
a  general  meeting,  which  they  shall  have  power  to  call  for 
that  purpose. 

X.  The  said  corporation  may  sell  an}'  part  of  the  public 
debt  whereof  its  stock  shall  be  composed,  but  shall  not  be  at 
liberty  to  purchase  any  public  debt  whatsoever ;    nor  shall 
directly  or  indirectly  deal  or  trade  in  anything,  except  bills 
of  exchange,  gold  or  silver  bullion,  or  in  the  sale  of  goods 
really  and  truly  pledged  for  money  lent  and  not  redeemed  in 
due  time  ;  or  of  goods  which  shall  be  the   produce  of  its 
lands.     Neither  shall  the  said  corporation  take,  more  than  at 
the  rate  of  six  per  centum  per  annum,  for  or  upon  its  loans 
or  discounts. 

XI.  No  loan  shall  be  made  b\-  the  said  corporation,  for  the 
use  or  on  account  of  the  government  of  the  United  States, 
to  an  amount  exceeding  one  hundred  thousand  dollars,  or  of 
any  particular  state,  to  an  amount  exceeding  fifty  thousand 
dollars,  or  of  any  foreign  prince  or  state,  unless  previously 
authorized  by  a  law  of  the  United  States. 

XII.  The  stock  of  the  said  corporation  shall  be  assignable 
and   transferable,  according  to  such   rules  as  shall   be  in- 
stituted in  that  behalf,   by  the  laws  and  ordinances  of  the 
same. 

XIII.  The  bills  obligatory  and  of  credit,  under  the  seal  of 
the  said  corporation,  which  shall  be  made  to  an}*  person  or 
persons,  shall  be  assignable  by  indorsement  thereupon,  under 
the  hand  or  hands  of  such  person  or  persons,  and  of  his,  her, 
or  their  assignee  or  assignees,  and  so  as  absolutely  to  transfer 
and  vest  the  propertj*  thereof  in  each  and  every  assignee  or 
assignees  successively,   and  to  enable  such  assignee  or  as- 
signees to  bring  and  maintain  an  action  thereupon  in  his, 
her,  or  their  own  name  or  names.     And  bills  or  notes,  which 
may  be  issued  by  order  of  the  said  corporation,  signed  by 


1791.]  BANK  ACT:  FUNDAMENTAL  ARTICLES.  27 

the  president,  and  countersigned  by  the  principal  cashier  or 
treasurer  thereof,  promising  the  pa3*ment  of  money  to  any 
person  or  persons,  his,  her,  or  their  order,  or  to  bearer, 
though  not  under  the  seal  of  the  said  corporation,  shall  be 
binding  and  obligatory  upon  the  same,  in  the  like  manner, 
and  with  the  like  force  and  effect,  as  upon  any  private  person 
or  persons,  if  issued  by  him  or  them,  in  his,  her,  or  their 
private  or  natural  capacity  or  capacities  ;  and  shall  be  assign- 
able and  negotiable,  in  like  manner  as  if  they  were  so  issued 
by  such  private  person  or  persons  —  that  is  to  say,  those 
which  may  be  payable  to  any  person  or  persons,  his,  her,  or 
their  order,  shall  be  assignable  by  indorsement,  in  like  man- 
ner, and  with  the  like  effect,  as  foreign  bills  of  exchange  now 
are  ;  and  those  which  are  payable  to  bearer,  shall  be  negoti- 
able and  assignable  b_y  delivery  only. 

XIV.  Half  yearly  dividends  shall  be  made  of  so  much  of  the 
profits  of  the  bank,  as  shall  appear  to  the  directors  advisable  ; 
and  once  in  every  three  years,  the  directors  shall  lay  before 
the  stockholders,  at  a  general  meeting,  for  their  information, 
an  exact  and  particular  statement  of  the  debts  which  shall 
have  remained  unpaid  after  the  expiration  of  the  original 
credit,  for  a  period  of  treble  the  term  of  that  credit ;   and  of 
the  surplus  of  profit,  if  any,  after  deducting  losses  and  divi- 
dends.    If  there  shall  be  a  failure  in  the  payment  of  any  part 
of  any  sum,  subscribed  by  any  person,  co-partnership,  or 
body  politic,  the  party  failing  shall  lose  the  benefit  of  any 
dividend,  which  ma}*  have  accrued,  prior  to  the  time  for  mak- 
ing such  payment,  and  during  the  delay  of  the  same. 

XV.  It  shall  be  lawful  for  the  directors  aforesaid,  to  estab- 
lish offices  wheresoever  they  shall  think  fit,  within  the  United 
States,  for  the  purposes  of  discount  and  deposit  only,  and 
upon  the  same  terms,  and  in  the  same  manner,  as  shall  be 
practised  at  the  bank ;  and  to  commit  the  management  of 
the  said  offices,  and  the  making  of  the  said  discounts,  to  such 
persons,  under  such  agreements,  and  subject  to  such  regula- 
tions as  the}r  shall  deem  proper ;  not  being  contrary  to  law, 
or  to  the  constitution  of  the  bank. 

XVI.  The  officer  at  the  head  of  the  treasury  department  of 


28  BANK  ACT:  PENAL  SECTIONS.  [1791. 

the  United  States,  shall  be  furnished,  from  time  to  time,  as 
often  as  he  may  require,  not  exceeding  once  a  week,  with 
statements  of  the  amount  of  the  capital  stock  of  the  said  cor- 
poration, and  of  the  debts  due  to  the  same ;  of  the  monies 
deposited  therein  ;  of  the  notes  in  circulation,  and  of  the  cash 
in  hand ;  and  shall  have  a  right  to  inspect  such  general  ac- 
counts in  the  books  of  the  bank  as  shall  relate  to  the  said 
statements.  Provided,  That  this  shall  not  be  construed  to 
imply  a  right  of  inspecting  the  account  of  any  private  indi- 
vidual or  individuals  with  the  bank. 

SEC.  8.  And  be  it  further  enacted,  That  if  the  said  corpo- 
ration, or  any  person  or  persons  for  or  to  the  use  of  the  same, 
shall  deal  or  trade  in  buying  or  selling  an}'  goods,  wares,  mer- 
chandise, or  commodities  whatsoever,  contrary  to  the  provi- 
sions of  this  act,  all  and  ever}'  person  and  persons,  by  whom 
an}-  order  or  direction  for  so  dealing  or  trading  shall  have 
been  given,  and  all  and  every  person  and  persons  who  shall 
have  been  concerned  as  parties  or  agents  therein,  shall  forfeit 
and  lose  treble  the  value  of  the  goods,  wares,  merchandises, 
and  commodities,  in  which  such  dealing  and  trade  shall  have 
been ;  one  half  thereof  to  the  use  of  the  informer,  and  the 
other  half  thereof  to  the  use  of  the  United  States,  to  be 
recovered  with  costs  of  suit. 

SEC.  9.  And  be  it  further  enacted,  That  if  the  said  cor- 
poration shall  advance  or  lend  any  sum,  for  the  use  or  on 
account  of  the  government  of  the  United  States,  to  an  amount 
exceeding  one  hundred  thousand  dollars  ;  or  of  any  particular 
state  to  an  amount  exceeding  fifty  thousand  dollars  ;  or  of  any 
foreign  prince  or  state,  (unless  previously  authorized  thereto 
by  a  law  of  the  United  States,)  all  and  every  person  and  per- 
sons, by  and  with  whose  order,  agreement,  consent,  approba- 
tion, or  connivance,  such  unlawful  advance  or  loan  shall  have 
been  made,  upon  conviction  thereof,  shall  forfeit  and  pay,  for 
every  such  offence,  treble  the  value  or  amount  of  the  sum  or 
sums  which  shall  have  been  so  unlawfully  advanced  or  lent ; 
one-fifth  thereof  to  the  use  of  the  informer,  and  the  residue 
thereof  to  the  use  of  the  United  States  ;  to  be  disposed  of  by 
law  and  not  otherwise. 


1791.]     BANK  ACT:  SUBSCRIPTION  BY  GOVERNMENT.  29 

SEC.  10.  And  be  it  further  enacted,  That  the  bills  or  notes 
of  the  said  corporation,  originall}'  made  pa}-able,  or  which  shall 
have  become  pa}-able  on  demand,  in  gold  and  silver  coin,  shall 
be  receivable  in  all  payments  to  the  United  States. 

SEC.  11.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  the  President  of  the  United  States,  at  an}'  time  or  times, 
within  eighteen  months  after  the  first  da}-  of  April  next,  to 
cause  a  subscription  to  be  made  to  the  stock  of  the  said  cor- 
poration, as  part  of  the  aforesaid  capital  stock  of  ten  millions 
of  dollars,  on  behalf  of  the  United  States,  to  an  amount  not 
exceeding  two  millions  of  dollars  ;  to  be  paid  out  of  the  monies 
which  shall  be  borrowed  by  virtue  of  either  of  the  acts,  the 
one  entitled  "An  act  making  provision  for  the  debt  of  the 
United  States  ;  "  and  the  other  entitled  "  An  act  making  pro- 
vision for  the  reduction  of  the  public  debt ; "  borrowing  of  the 
bank  an  equal  sum,  to  be  applied  to  the  purposes  for  which 
the  said  monies  shall  have  been  procured  ;  reimbursable  in  ten 
}-ears,  b}*  equal  annual  instalments  ;  or  at  an}-  time  sooner,  or 
in  any  greater  proportions,  that  the  government  may  think  fit. 

SEC.  12.  And  be  it  further  enacted,  That  no  other  bank 
shall  be  established  by  any  future  law  of  the  United  States, 
during  the  continuance  of  the  corporation  hereb}'  created  ;  for 
which  the  faith  of  the  United  States  is  hereb}-  pledged. 

[Approved,  February  25,  1791.     1  Statutes  at  Large,  191.] 

1790-91,  Chap.  XI.  —  An  Act  supplementary  to  the  act  inti- 
tuled "  An  act  to  incorporate  the  subscribers  to  the  Bank 
of  the  United  States" 

SECTION  1.  Be  it  enacted,  .  .  .  That  the  subscriptions  to 
the  stock  of  the  Bank  of  the  United  States,  as  provided  by 
the  act,  intituled  "  An  act  to  incorporate  the  subscribers  to  the 
bank  of  the  United  States,"  shall  not  be  opened  until  the  first 
Monday  in  July  next. 

SEC.  2.  And  be  it  further  enacted,  That  so  much  of  the 
first  payment  as  by  the  said  act  is  directed  to  be  in  the  six 
per  cent,  certificates  of  the  United  States,  may  be  deferred 
until  the  first  Monday  in  January  next. 


30  EXCISE   PLEDGED    FOR   PAYMENT    OF   INTEREST.      [1791. 

SEC.  3.  And  be  it  further  enacted,  That  no  person,  cor- 
poration, or  bod}'  politic,  except  in  behalf  of  the  United  States, 
shall,  for  the  space  of  three  months  after  the  said  first  Mon- 
da}r  in  July  next,  subscribe  in  any  one  day,  for  more  than 
thirty  shares. 

SEC.  4.  And  be  it  further  enacted,  That  every  subscriber 
shall,  at  the  time  of  subscribing,  pay  into  the  hands  of  the 
persons  who  shall  be  appointed  to  receive  the  same,  the  specie 
proportion  required  by  the  said  act  to  be  then  paid.  And  if 
an}T  such  subscriber  shall  fail  to  make  any  of  the  future  pay- 
ments, he  shall  forfeit  the  sum  so  by  him  first  paid,  for  the 
use  of  the  corporation. 

SEC.  5.  And  be  it  further  enacted,  That  such  part  of  the 
public  debt,  including  the  assumed  debt,  as  is  funded  at  an 
interest  of  three  per  cent,  may  be  paid  to  the  bank,  in  like 
manner  with  the  debt  funded  at  six  per  cent.,  computing  the 
value  of  the  former  at  one  half  the  value  of  the  latter,  and  re- 
serving to  the  subscribers  who  shall  have  paid  three  per  cent, 
stock,  the  privilege  of  redeeming  the  same  with  six  per  cent, 
stock,  at  the  above  rate  of  computation,  at  an}-  time  before 
the  first  day  of  Januaiy,  one^  thousand  seven  hundred  and 
ninet}T-three  ;  unless  the  three  per  cent,  stock  shall  have  been 
previously  disposed  of  b}-  the  directors.  • 

[Approved,  March  2,  1791.    1  Statutes  at  Large,  196.] 

1790-91,  Chap.  XV.  —  An  Act  repealing,  after  the  last  day 
of  June  next,  the  duties  heretofore  laid  upon  Distilled 
Spirits  imported  from  abroad,  and  laying  others  in 
their  stead ;  and  also  upon  /Spirits  distilled  within  the 
United  States,  and  for  appropriating  the  same. 

SEC.  60.  And  be  it  further  enacted,  That  the  nett  product 
of  the  duties  herein  before  specified,  which  shall  be  raised, 
levied  and  collected  by  virtue  of  this  act,  or  so  much  thereof 
as  ma}7  be  necessary,  shall  be,  and  is  hereby  pledged  and  ap- 
propriated for  the  pa}'ment  of  the  interest  of  the  several  and 
respective  loans  which  had  been  made  in  foreign  countries, 
prior  to  the  fourth  day  of  August  last ;  and  also  upon  all  and 


1791.]         SURPLUS  EXCISE  PLEDGED  TO  REDUCE  DEBT.  31 

every  the  loan  and  loans  which  have  been  and  shall  be  made, 
and  obtained  pursuant  to  the  act  intituled  "An  act  making 
provision  for  the  debt  of  the  United  States  ; "  and  according 
to  the  true  intent  and  meaning  of  the  said  act,  and  of  the  sev- 
eral provisions  and  engagements  therein  contained  and  ex- 
pressed, and  subject  to  the  like  priorities  and  reservations  as 
are  made  and  contained  in  and  by  the  said  act,  in  respect  to 
the  monies  therein  appropriated,  and  subject  to  this  farther 
reservation,  that  is  to  sa\-  —  Of  the  nett  amount  or  product  dur- 
ing the  present  year,  of  the  duties  laid  by  this  act,  in  addition 
to  those  heretofore  laid  upon  spirits  imported  into  the  United 
States,  from  any  foreign  port  or  place,  and  of  the  duties  laid 
by  this  act  on  spirits  distilled  within  the  United  States,  and 
on  stills  ;  to  be  disposed  of  towards  such  purposes  for  which 
appropriations  shall  be  made  during  the  present  session.  And 
to  the  end  that  the  said  monies  ma}-  be  inviolably  applied  in 
conformity  to  the  appropriation  hereby  made,  and  may  never 
be  diverted  to  an}'  other  purpose  until  the  final  redemption, 
or  reimbursement  of  the  loans  or  sums  for  the  payment  of  the 
interest  whereof  they  are  appropriated,  an  account  shall  be 
kept  of  the  receipts  and  disposition  thereof,  separate  and  dis- 
tinct from  the  product  of  any  other  duties,  impost,  excise,  and 
taxes  whatsoever,  except  those  heretofore  laid  and  appropri- 
ated to  the  same  purposes. 

SEC.  61.  And  be  it  further  enacted,  That  the  unappropri- 
ated surplus,  if  any  there  shall  be,  of  the  revenue  arising  under 
this  act,  at  the  end  of  this  and  ever}-  succeeding  year,  shall 
be  applied  to  the  reduction  of  the  public  debt,  in  like  manner 
as  is  directed  by  the  act,  intituled  "An  act  making  provision 
for  the  reduction  of  the  public  debt,"  and  provided  by  the  act, 
intituled  "An  act  making  provision  for  the  debt  of  the  United 
States ; "  unless  the  said  surplus,  or  any  part  thereof,  shall 
be  required  for  the  public  exigencies  of  the  United  States,  and 
shall,  by  special  acts  of  Congress,  be  appropriated  thereto. 

SEC.  62.  And  be  it  further  enacted,  That  the  several  du- 
ties imposed  b}-  this  act,  shall  continue  to  be  collected  and 
paid,  until  the  debts  and  purposes  for  which  they  are  pledged 
and  appropriated  shall  be  fully  discharged  and  satisfied,  and 


32  SINKING   FUND   PURCHASES.  [1792. 

no  longer.     Provided  always,  That  nothing  herein  contained 
'shall  be  construed  to  prevent  the  legislature  of  the  United 
States  from  substituting  other  duties  or  taxes  of  equal  value 
to  all  or  any  of  the  said  duties  and  imposts. 

[Approved,  March  3,  1791.    1  Statutes  at  Large,  213.] 

1791-92,  Chap.  XXXVIII.  —  An  Act  supplementary  to  the 
act  making  provision  for  the  Debt  of  the  United  States. 

[Sections  1,  2,  3,  and  4  provide  for  extending  the  time  allowed  for  re- 
ceiving on  loan  the  domestic  debt  of  the  United  States,  and  the  debt  of 
the  respective  states,  under  the  Act  of  August  4,  1790.  See  Note  on  p.  18. 

Section  5  authorizes  the  President  of  the  United  States  to  discharge 
the  principal  and  interest  of  the  debt  due  to  foreign  officers,  out  of  any 
monies  borrowed  under  the  aforesaid  act  and  not  needed  to  fulfil  its 
purposes.] 

SEC.  6.  And  be  it  further  enacted.  That  the  President  of 
the  Senate,  the  Chief  Justice,  the  Secretary  of  State,  the  Sec- 
retary of  the  Treasury,  arid  the  Attorney  General,  for  the 
time  being,  shall  be  commissioners,  who,  or  an}-  three  of 
whom,  are  hereby  authorized,  with  the  approbation  of  the 
President  of  the  United  States,  to  purchase  the  debt  of  the 
United  States,  at  its  market  price,  if  not  exceeding  the  par 
or  true  value  thereof;  for  which  purchase  the  interest  on  so 
much  of  the  public  debt,  as  has  already  been,  or  may  hereafter 
"  be  purchased  for  the  United  States,  or  as  shall  be  paid  into 
the  treasury,  and  so  much  of  the  monies  appropriated  for  the 
payment  of  the  interest  on  the  foreign  and  domestic  debt,  as 
shall  exceed  what  may  be  sufficient  for  the  payment  of  such 
interest  to  the  creditors  of  the  United  States,  shall  be  and  are 
hereby  appropriated.  And  it  shall  be  the  duty  of  the  said 
commissioners  to  render  to  the  legislature,  within  two  months 
after  the  commencement  of  the  first  session  thereof  in  every 
year,  a  full  and  precise  account  of  all  such  purchases  made, 
and  public  debt  redeemed,  in  pursuance  of  this  act. 

SEC.  7.  And  whereas  it  is  expedient  to  establish  a  fund  for 
the  gradual  reduction  of  the  public  debt:  Be  it  further  en- 
acted, That  the  interest  on  so  much  of  the  debt  of  the  United 
States,  as  has  been  or  shall  be  purchased  or  redeemed  for  or 


1792.]       RESOURCES    AND    APPLICATION   OF   THE    FUND.  33 

by  the  United  States,  or  as  shall  be  paid  into  the  treasury 
thereof  in  satisfaction  of  any  debt  or  demand,  and  the  surplus 
of  any  sum  or  sums  appropriated  for  the  payment  of  the  inter- 
est upon  the  said  debt,  which  shall  remain  after  paying  such 
interest,  shall  be,  and  hereby  are  appropriated  and  pledged 
firmly  and  inviolably  for  and  to  the  purchase  and  redemp- 
tion of  the  said  debt,  to  be  applied  under  the  direction  of  the 
President  of  the  Senate,  the  Chief  Justice,  the  Secretary  of 
State,  the  Secretary  of  the  Treasury,  and  the  Attorney-Gen- 
eral for  the  time  being,  or  any  three  of  them,  with  the  appro- 
bation of  the  President  of  the  United  States,  for  the  time 
being,  in  manner  following,  that  is  to  say :  First,  to  the  pur- 
chase of  the  several  species  of  stock  constituting  the  debt  of  the 
United  States,  at  their  respective  market  prices,  not  exceed- 
ing the  par  or  true  value  thereof,  and  as  nearly  as  may  be,  in 
equal  proportions,  until  the  annual  amount  of  the  said  funds, 
together  with  an}*  other  provisions  which  may  be  made  by  law, 
shall  be  equal  to  two  per  centum  of  the  whole  amount  of  the 
outstanding  funded  stock  bearing  a  present  interest  of  six  per 
centum.  Thenceforth,  secondly,  to  the  redemption  of  the 
said  last  mentioned  stock,  according  to  the  right  for  that  pur- 
pose-reserved to  the  United  States,  until  the  whole  amount 
thereof  shall  have  been  redeemed.  And  lastly,  after  such 
redemption,  to  the  purchase,  at  its  market  price,  of  any  other 
stock  consisting  of  the  debt  of  the  United  States,  which  may 
ithen  remain  unredeemed :  and  such  purchase,  as  far  as  the 
fund  shall  at  any  time  extend,  shall  be  made  within  thirty 
days  next  after  each  day,  on  which  a  quarterly  payment  of 
interest  on  the  debt  of  the  United  States  shall  become  due-, 
and  shall  be  made  by  a  known  agent,  to  be  named  b}-  the 
said  commissioners. 

SEC.  8.  And  be  it  farther  enacted,  That  all  future  pur- 
chases of  public  debt  on  account  of  the  United  States,  shall 
be  made  at  the  lowest  price,  at  which  the  same  can  be  obtained 
by  open  purchase,  or  by  receiving  sealed  proposals,  to  be 
opened  in  the  presence  of  the  commissioners,  or  persons  au- 
thorized by  them  to  make  purchases,  and  the  persons  making 
such  proposals. 


34  BALANCES   DUE   TO   STATES.  [1794. 

SEC.  9.  And  be  it  further  enacted,  That  quarter  yearly 
accounts  of  the  application  of  the  said  fund  shall  be  rendered 
for  settlement,  as  mother  public  accounts,  accompanied  with 
returns  of  the  sums  of  the  said  debt,  which  shall  have  been 
from  time  to  time  purchased  or  redeemed  ;  and  a  full  and  exact 
report  of  the  proceedings  of  the  said  commissioners,  including 
a  statement  of  the  disbursements,  which  shall  have  been  made, 
and  of  the  sums  which  shall  have  been  purchased  or  redeemed 
under  their  direction,  and  specifying  dates,  prices,  parties,  and 
places,  shall  be  laid  before  Congress,  within  the  first  fourteen 
days  of  each  session  which  may  ensue  the  present,  during  the 
execution  of  the  said  trust. 

[Approved,  May  8,  1792.     1  Statutes  at  Large,  281.] 

1793-94,  Chap.  XXXVII.  —  An  Act  making  provision  for 
the  payment  of  the  interest  on  the  balances  elite  to  cer- 
tain States,  upon  a  final  settlement  of  the  accounts  be- 
tween the  United  States  and  the  individual  States. 

SECTION  1.  Be  it  enacted,  .  .  .  That  interest  upon  the 
balances  reported  to  be  due  to  certain  states,  by  the  commis- 
sioners for  settling  accounts  between  the  United  States  and 
individual  states,  be  allowed,  from  the  last  day  of  December, 
one  thousand  seven  hundred  and  eighty-nine,  and  to  be 
computed  to  the  last  da}*  of  December,  one  thousand  seven 
hundred  and  ninety-four,  at  the  rate  of  four  per  centum  per 
annum  :  And  that  the  amount  of  such  interest  be  placed  to  the 
credit  of  the  state,  to  which  the  same  shall  be  found  due,  upon 
the  books  of  the  treasury  of  the  United  States,  and  shall  bear 
an  interest  of  three  per  centum  per  annum,  from  and  after  the 
said  last  day  of  December,  one  thousand  seven  hundred  and 
ninety-four. 

[Section  2  provides  for  the  quarterly  payment  of  tlie  interest  due  to 
any  state,  beginning  on  the  last  day  of  March,  1795 ;  and  pledges  for  the 
payment  of  the  interest  so  much  of  the  duties  arising  from  imports  and 
tonnage,  after  December  31, 1794,  as  may  be  necessary  and  not  otherwise 
appropriated,  also  pledging  the  faith  of  the  United  States  to  provide  for 
any  deficiency.] 

[Approved,  May  31,  1791.    1  Statutes  at  Large,  371.] 


1795.]        PLEDGE   OF   DUTIES   FOR   INTEREST   ON   DEBT.  35 

NOTE,  — By  the  act  of  January  2,  1795,  1  Statutes  at  Large,  409,  any 
state  is  authorized,  within  two  years,  to  transfer  stock  thus  created  to 
creditors  of  the  state  who  were  such  prior  to  July  1,  1793.  This  author- 
ity was  continued  to  March  4,  1799,  by  the  act  of  July  6,  1797.  See 
ibid.  533. 


1794-95,  chap.  XLV.  —  An  Act  making  further  provision 
for  the  support  of  Public  Credit,  and  for  the  redemp- 
tion of  the  Public  Debt. 

[Section  1  authorizes  the  commissioners  of  the  sinking  fund  to  borrow 
not  exceeding  one  million  dollars  in  any  one  year,  in  anticipation  of  the 
revenue,  for  the  payment  of  interest  on  the  public  debt,  and  appropriates 
for  the  interest  on  such  temporary  loan  the  proceeds  of  duties  on  goods 
imported,  on  tonnage,  and  upon  spirits  distilled  within  the  United  States, 
and  stills. 

Sections  2-4  authorize  a  loan  to  be  issued  in  exchange  for  equal  amounts 
of  the  foreign  debt,  to  bear  an  interest  equal  to  the  interest  payable  on 
the  foreign  debt  exchanged,  with  an  addition  of  one-half  of  one  per  cant, 
per  annum,  and  the  principal  to  be  reimbursable  at  pleasure.  The  new 
loan  is  to  be  entered  on  the  books  of  the  treasury  in  like  manner  as  the 
domestic  funded  debt,  and  to  be  transferable  in  like  manner;  and  the  in- 
terest and  principal  of  loans  authorized  by  this  act  are  to  be  payable  at 
the  treasury  only,  so  far  as  relates  to  the  principal  and  interest  of  the 
domestic  debt. 

Section  5  provides  that  so  much  of  the  duties  on  goods  imported,  on 
tonnage,  and  upon  spirits  distilled  and  stills  as  may  be  set  free  by  sub- 
scriptions to  the  new  loan,  with  such  further  part  of  the  proceeds  as  may 
be  necessary,  shall  remain  appropriated  for  the  payment  of  interest  on 
the  said  loan  until  the  principal  thereof  is  reimbursed  :  provided  that 
nothing  herein  contained  shall  alter  any  existing  contract  concerning 
the  foreign  debt  except  as  to  such  holders  as  may  subscribe  to  the  new 
loan.  | 

SEC.  6.  And  be  it  further  enacted,  That  the  several  and 
respective  duties  laid  and  contained  in  and  by  the  act,  intituled 
"An  act  laying  additional  duties  on  goods,  wares,  and  mer- 
chandise imported  into  the  United  States,"  passed  the  seventh 
day  of  June,  one  thousand  seven  hundred  and  ninety-four, 
shall,  together  with  the  other  duties  heretofore  charged  with 
the  payment  of  interest  on  the  public  debt,  continue  to  be 
levied,  collected  and  paid,  until  the  whole  of  the  capital  or 
principal  of  the  present  debt  of  the  United  States,  and  future 
loans  which  may  be  made,  pursuant  to  law,  for  the  exchange, 


36  REIMBURSEMENT   OF    SIX   PER   CENT   STOCK.         [1795. 

reimbursement  or  redemption  thereof,  or  of  any  part  thereof, 
shall  be  reimbursed  or  redeemed,  and  shall  be,  and  hereby 
are,  pledged  and  appropriated  for  the  payment  of  interest 
upon  the  said  debt  and  loans,  until  the  same  shall  be  so  reim- 
bursed or  redeemed. 

[Section  7  annuls  the  reservation  made  by  §  4  of  the  act  of  August  12( 
1790,  and  makes  other  provision  for  the  same  purpose.] 

SEC.  8.  And  be  it  further  enacted,  That  the  following  ap- 
propriations, in  addition  to  those  heretofore  made,  be  made 
to  the  fund  constituted  by  the  seventh  section  of  the  act,  in- 
tituled "An  act  supplemental  to  the  act  making  provision 
for  the  debt  of  the  United  States,"  passed  the  eighth  day  of 
May,  one  thousand  seven  hundred  and  ninet}--two,  to  be 
hereafter  denominated  "The  Sinking  Fund,"  to  wit:  First, 
So  much  of  the  proceeds  of  the  duties  on  goods,  wares  and 
merchandise  imported  ;  on  the  tonnage  of  ships  or  vessels, 
and  on  spirits  distilled  within  the  United  States  and  stills, 
a&j  together  with  the  monies  which  now  constitute  the  said 
fund,  and  shall  accrue  to  it,  by  virtue  of  the  provisions  herein 
before  made,  and  by  the  interest  upon  each  instalment,  or 
part  of  principal,  which  shall  be  reimbursed,  will  be  sufficient, 
yearly  and  every  year,  commencing  the  first  dajr  of  January 
next,  to  reimburse  and  pa}'  so  much  as  may  rightfully  be  re- 
imbursed and  paid,  of  the  principal  of  that  part  of  the  debt 
or  stock  which,  on  the  said  first  day  of  Januaiy  next,  shall 
bear  an  interest  of  six  per  centum  per  annum,  redeemable  !)}• 
payments  on  account  both  of  principal  and  interest,  not  ex- 
ceeding, in  one  year,  eight  per  centum,  excluding  that  which 
shall  stand  to  the  credit  of  the  commissioners  of  the  sinking 
fund,  and  that  which  shall  stand  to  the  credit  of  certain 
states,  in  consequence  of  the  balances  reported  in  their 
favour,  by  the  commissioners  for  settling  accounts  between 
the  United  States  and  individual  states:  Secondly, — The 
dividends,  which  shall  be,  from  time  to  time,  declared  on  so 
much  of  the  stock  of  the  Bank  of  the  United  States,  as  be- 
longs to  the  United  States  (deducting  thereout  such  sums,  as 
will  be  requisite  to  pay  interest  on  any  part  remaining  unpaid 


1795.]  FURTHER  PROVISION   FOR   SINKING   FUND.  87 

of  the  loan  of  two  millions  of  dollars,  had  of  the  Bank  of  the 
United  States,  pursuant  to  the  eleventh  section  of  the  act,  by 
which  the  said  bank  is  incorporated)  :  Thirdly,  —  So  much 
of  the  duties  on  goods,  wares,  and  merchandise  imported,  on 
the  tonnage  of  ships  or  vessels,  and  on  spirits  distilled  within 
the  United  States  and  stills,  as,  with  the  said  dividends,  after 
such  deduction,  will  be  sufficient,  yearly  and  every  year,  to 
pay  the  remaining  instalments  of  the  principal  of  the  said 
loan,  as  they  shall  become  due,  and  as,  together  with  any 
monies,  which,  by  virtue  of  provisions  in  former  acts,  aud 
herein  before  made,  shall,  on  the  first  day  of  January,  in  the 
year  one  thousand  eight  hundred  and  two,  belong  to  the  said 
sinking  fund,  not  otherwise  specially  appropriated  ;  and  with 
the  interest  on  each  instalment,  or  part  of  principal,  which 
shall,  from  time  to  time,  be  reimbursed,  or  paid,  of  that  part 
of  the  debt  or  stock,  which,  on  the  first  day  of  January,  in 
the  year  one  thousand  eight  hundred  and  one,  shall  begin  to 
bear  an  interest  of  six  per  centum  per  annum,  will  be  suffi- 
cient, yearly  and  every  year,  commencing  on  the  first  da}*  01 
January,  in  the  year  one  thousand  eight  hundred  and  two, 
to  reimburse  and  pay  so  much,  as  ma}'  rightfully  be  reim- 
bursed and  paid,  of  the  said  principal  of  the  said  debt  or 
stock,  which  shall  so  begin  to  bear  an  interest  of  six  per  cen- 
tum per  annum,  on  the  said  first  day  of  January,  in  the  year 
one  thousand  eight  hundred  and  one,  excluding  that,  which 
shall  stand  to  the  credit  of  the  commissioners  of  the  sinking 
fund,  and  that,  which  shall  stand  to  the  credit  of  certain 
states,  as  aforesaid :  Fourthly,  —  The  net  proceeds  of  the 
sales  of  lands  belonging,  or  which  shall  hereafter  belong  to 
the  United  States,  in  the  western  territory  thereof:  Fifthly, 
—  All  monies,  which  shall  be  received  into  the  treasury,  on 
account  of  debts  due  to  the  United  States,  by  reason  of  any 
matter  prior  to  their  present  constitution  ;  And  lastly,  —  all 
surpluses  of  the  revenues  of  the  United  States,  which  shall 
remain,  at  the  end  of  an}'  calendar  year,  beyond  the  amount 
of  the  appropriations  charged  upon  the  said  revenues,  and 
which,  during  the  session  of  Congress  next  thereafter,  shall 
not  be  otherwise  specially  appropriated  or  reserved  by  law. 


38  INVIOLABLE   APPLICATION   OF  »FDND    PLEDGED.      [1795. 

ft 

SEC.  9.  And  be  it  further  enacted,  That  as  well  the  monies 
which  shall  accrue  to  the  said  sinking  fund,  by  virtue  of  the 
provisions  of  this  act,  as  those  which  shall  have  accrued  to 
the  same,  by  virtue  of  the  provisions  of  any  former  act  or 
acts,  shall  be  under  the  direction  and  management  of  the 
commissioners  of  the  sinking  fund,  or  the  officers  designated 
in  and  by  the  second  section  of  the  act,  intituled  "An  act 
making  provision  for  the  reduction  of  the  public  debt," 
passed  the  twelfth  da}r  of  August,  one  thousand  seven  hun- 
dred and  ninety,  and  their  successors  in  office  ;  and  shall  be, 
and  continue  appropriated  to  the  said  fund,  until  the  whole 
of  the  present  debt  of  the  United  States,  foreign  and  domes- 
tic, funded  and  unfunded,  including  future  loans,  which  may 
be  made  for  reimbursing  or  redeeming  any  instalments  or 
parts  of  principal  of  the  said  debt,  shall  be  reimbursed  and 
redeemed ;  and  shall  be,  and  are  hereb}7  declared  to  be 
vested  in  the  said  commissioners,  in  trust,  to  be  applied, 
according  to  the  provisions  of  the  aforesaid  act  of  the  eighth 
day  of  May,  in  the  year  one  thousand  seven  hundred  and 
ninety-two,  and  of  this  act,  to  the  reimbursement  and  re- 
demption of  the  said  debt,  including  the  loans  aforesaid, 
until  the  same  shall  be  fully  reimbursed  and  redeemed.  And 
the  faith  of  the  United  States  is  hereby  pledged,  that  the 
monies  or  funds  aforesaid,  shall  inviolably  remain,  and  be 
appropriated  and  vested,  as  aforesaid,  to  be  applied  to  the 
said  reimbursement  and  redemption,  in  manner  aforesaid, 
until  the  same  shall  be  full}'  and  completely  effected. 

SEC.  10.  And  be  it  further  enacted,  That  all  reimburse- 
ments of  the  capital,  or  principal  of  the  public  debt,  foreign 
and  domestic,  shall  be  made  under  the  superintendence  of  the 
commissioners  of  the  sinking  fund,  who  are  hereb}7  empow- 
ered and  required,  if  necessary,  with  the  approbation  of  the 
President  of  the  United  States,  as  any  instalments  or  parts 
of  the  said  capital  or  principal  become  due,  to  borrow,  on 
the  credit  of  the  United  States,  the  sums  requisite  for  the 
payment  of  the  said  instalments,  or  parts  of  principal :  Pro- 
vided, That  any  loan  which  may  be  made  by  the  said  com- 
missioners, shall  be  liable  to  reimbursement  at  the  pleasure 


1795.]  PRIORITIES    IN   PAYMENT   ESTABLISHED.  39 

of  the  United  States  ;  and  that  the  rate  of  interest  thereupon 
shall  not  exceed  six  per  centum  per  annum  ;  and  for  greater 
caution,  it  is  hereby  declared  that  it  shall  be  deemed  a  good 
execution  of  the  said  power  to  borrow,  for  the  said  commis- 
sioners, with  the  approbation  of  the  President,  to  cause  to  be 
constituted  certificates  of  stock,  signed  by  the  Register  of  the 
Treasury  for  the  sums  to  be  respectively  borrowed,  bearing 
an  interest  of  six  per  centum  per  annum,  and  redeemable  at 
the  pleasure  of  the  United  States ;  and  to  cause  the  said 
certificates  of  stock  to  be  sold  in  the  market  of  the  United 
States  or  elsewhere ;  Provided,  That  no  such  stock  be  sold 
under  par.  And  for  the  payment  of  interest  on  any  sum  or 
sums  which  may  be  so  borrowed,  either  by  direct  loans,  or  by 
the  sale  of  certificates  of  stock,  the  interest  on  the  sum  or 
sums  which  shall  be  reimbursed  by  the  proceeds  thereof  (ex- 
cept that  upon  the  funded  stock,  bearing,  and  to  bear  an 
interest  of  six  per  centum,  redeemable  by  payments,  not 
exceeding  in  one  year,  eight  per  centum  on  account  of  both 
principal  and  interest),  and  so  much  of  the  duties  on  goods, 
wares  and  merchandise  imported,  on  the  tonnage  of  ships  or 
vessels,  and  upon  spirits  distilled  within  the  United  States, 
and  upon  stills,  as  may  be  necessaiy,  shall  be,  and  hereb}" 
are  pledged  and  appropriated. 

SEC.  11.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  commissioners  of  the  sinking  fund,  to  cause  to  be 
applied  and  paid,  out  of  the  said  fund,  yearly  and  every 
year,  at  the  treasury  of  the  United  States,  the  several  and 
respective  sums  following,  to  wit :  First,  such  sum  and  sums 
as,  according  to  the  right  for  that  purpose  reserved,  ma}' 
rightfully  be  paid  for,  and  towards  the  reimbursement  or 
redemption  of  such  debt  or  stock  of  the  United  States,  as,  on 
the  first  day  of  January  next,  shall  bear  an  interest  of  six 
per  centum  per  annum,  redeemable  b}-  payments,  not  exceed- 
ing in  one  year,  eight  per  centum,  on  account  both  of  prin- 
cipal and  interest,  excluding  that  standing  to  the  credit  of 
the  commissioners  of  the  sinking  fund,  and  that  standing  to 
the  credit  of  certain  states,  as  aforesaid,  commencing  the 
said  reimbursement  or  redemption,  on  the  said  first  day  of 


40  PRIORITIES  IN  PAYMENT:  THREE  PER  CEISTS.     [1795. 

January  next :  Secondly,  such  sum  and  sums  as,  according  to 
the  conditions  of  the  aforesaid  loan,  had  of  the  Bank  of  the 
United  States,  shall  be  henceforth  payable  towards  the  re- 
imbursement thereof,  as  the  same  shall  respectively  accrue : 
Thirdly,  such  sum  and  sums  as,  according  to  the  right  for 
that  purpose  reserved,  may  rightfully  be  paid  for  and  towards 
the  reimbursement  or  redemption  of  such  debt  or  stock  of  the 
United  States  as,  on  the  first  day  of  January,  in  the  year  one 
thousand  eight  hundred  and  one,  shall  begin  to  bear  an  in- 
terest of  six  per  centum  per  annum,  redeemable  by  payments, 
not  exceeding,  in  one  year,  eight  per  centum,  on  account  both 
of  principal  and  interest,  excluding  that  standing  to  the 
credit  of  the  commissioners  of  the  sinking  fund,  and  that 
standing  to  the  credit  of  certain  states,  as  aforesaid,  com- 
mencing the  said  reimbursement  or  redemption,  on  the  first 
da}'  of  January,  in  the  }'ear  one  thousand  eight  hundred  and 
two :  and,  also  to  cause  to  be  applied  all  such  surplus  of  the 
said  fund,  as  may  at  any  time  exist,  after  satisfying  the 
purposes  aforesaid,  towards  the  further  and  final  redemption 
of  the  present  debt  of  the  United  States,  foreign  and  domes- 
tic, funded  and  unfunded,  including  loans  for  the  reimburse- 
ment thereof,  by  payment  or  purchase,  until  the  said  debt 
shall  be  completely  reimbursed  or  redeemed. 

SEC.  12.  Provided  always,  and  be  it  farther  enacted, 
That  nothing  in  this  act  shall  be  construed  to  vest  in  the 
commissioners  of  the  sinking  fund  a  right  to  pa}',  in  the  pur- 
chase or  discharge  of  the  unfunded  domestic  debt  of  the 
United  States,  a  higher  rate  than  the  market  price  or  value 
of  the  funded  debt  of  the  United  States :  'And  provided 
also,  That  if  after  all  the  debts  and  loans  aforesaid,  now  due, 
and  that  shall  arise  under  this  act,  excepting  the  said  debt 
or  stock  bearing  an  interest  of  three  per  cent,  shall  be  fully 
paid  and  discharged,  any  part  of  the  principal  of  the  said 
debt  or  stock  bearing  an  interest  of  three  per  cent,  as  afore- 
said, shall  be  unredeemed,  the  government  shall  have  libert}*, 
if  they  think  proper,  to  make  other  and  different  appropria- 
tions of  the  said  funds. 

SEC.   13.    And  be  it  further  enacted,  That  all  priorities 


1795.]    DISSENTING   CREDITORS:    "THE   SURPLUS   FUND."  41 

heretofore  established  in  the  appropriations  by  law,  for  the 
interest  on  the  debt  of  the  United  States,  as  between  the 
different  parts  of  the  said  debt,  shall,  after  the  year  one 
thousand  seven  hundred  and  ninety-six,  cease,  with  regard 
to  all  creditors  of  the  United  States,  who  do  not,  before  the 
expiration  of  the  said  period,  signify,  in  writing,  to  the 
Comptroller  of  the  Treasury,  their  dissent  therefrom ;  and 
that  thenceforth,  with  the  exception  only  of  the  debts  of  such 
creditors  who  shall  so  signify  their  dissent,  the  funds  ori rev- 
enues charged  with  the  said  appropriations  shall,  together, 
constitute  a  common  or  consolidated  fund,  chargeable  in- 
discriminately, and  without  prioritj",  with  the  payment  of 
the  said  interest. 

[Section  14  requires  that  all  outstanding  loan  office  certificates,  final 
settlements,  and  indents  of  interest  shall  be  presented  before  January  1, 
1797,  to  the  Auditor  of  the  Treasury,  to  be  exchanged  for  new  certifi- 
cates, or  registered  and  returned,  at  the  option  of  the  holder;  and  all 
certificates,  not  so  presented,  shall  be  forever  barred. 

Section  15  enacts  that  any  transfer  of  stock  standing  to  the  credit  of 
astate,  made  after  December  31,  1795,  shall  be  upon  condition  that  it 
shall  be  lawful  to  reimburse  so  much  of  the  principal  of  the  stock  trans- 
ferred as  will  make  its  reimbursement  equal  to  that  of  the  same  stock 
transferred  previous  to  the  said  day.] 

SEC.  1C.  And  be  it  further  enacted,  That  in  regard  to 
any  sum  which  shall  have  remained  unexpended  upon  any 
appropriation  other  than  for  the  payment  of  interest  on  the 
funded  debt;  for  the  payment  of  interest  upon,  and  reim- 
bursement, according  to  contract,  of  any  loan  or  loans  made 
on  account  of  the  United  States ;  for  the  purposes  of  the 
sinking  fund  ;  or  for  a  purpose,  in  respect  to  which,  a  longer 
duration  is  specially  assigned  by  law,  for  more  than  two 
years  after  the  expiration  of  the  calendar  year  in  which  the 
act  of  appropriation  shall  have  been  passed,  such  appropria- 
tion shall  be  deemed  to  have  ceased  and  been  determined  ; 
and  the  sum  so  unexpended  shall  be  carried  to  an  account  on 
the  books  of  the  treasury,  to  be  denominated  "  THE  SURPLUS 
FUND."  But  no  appropriation  shall  be  deeiped  to  have  so 
ceased  and  been  determined,  until  after  the  j'ear  one  thou- 
sand seven  hundred  and  ninety-five,  unless  it  shall  appear  to 


42  TIMES   FOE   REIMBURSING   SIX  PER   CENTS.  [1796. 

the  Secretary  of  the  Treasury,  that  the  object  thereof  hath 
been  fully  satisfied,  in  which  case,  it  shall  be  lawful  for  him 
to  cause  to  be  carried  the  unexpended  residue  thereof,  to  the 
said  account  of  "the  surplus  fund." 

[By  sections  17,  18,  and  19,  the  treasury  is  required  to  establish  rules 
for  the  execution  of  this  act ;  all  restrictions  and  regulations  heretofore 
imposed  by  law  upon  the  commissioners  of  the  sinking  fund  are  made 
applicable  in  analogous  cases  under  this  act,  and  an  account  of  all  sales 
of  stock  or  loans  made  is  required  to  be  laid  before  Congress  within  four- 
teen days  after  its  next  meeting;  and  in  every  case  it  is  made  lawful  to 
borrow  from  the  Bank  of  the  United  States,  whatever  the  amount  of 
the  loan.] 

[Approved,  March  3,  1705.     1  Statutes  at  Large,  433.] 

1795-96,  Chap.  XVI. — An  Act  in  addition  to  an  act  intituled 
"  An  act  making  further  provision  for  the  siipport  of 
Public  Credit,  and  for  the  redemption  of  the  Public 
Debt." 

SECTION  1.  J3e  it  enacted,  .  .  .  That  it  shall  be  lawful  for 
the  commissioners  of  the  sinking  fund,  and  they  are  hereby 
required,  to  cause  the  funded  stock  of  the  United  States  bear- 
ing a  present  interest  of  six  per  centum  per  annum,  to  be 
reimbursed  and  paid,  in  manner  following,  to  wit :  First, 
by  dividends  to  be  made  on  the  last  days  of  March,  June, 
and  September  for  the  present  year,  and  from  the  year  one 
thousand  seven  hundred  and  ninetj'-seven,  to  the  year  one 
thousand  eight  hundred  and  eighteen  inclusive,  at  the  rate  of 
one  and  one  half  per  centum  upon  the  original  capital.  Sec- 
ondry,  by  dividends  to  be  made  on  the  last  day  of  December 
for  the  present  year,  and  from  the  }-ear  one  thousand  seven 
hundred  and  ninety-seven,  to  the  year  one  thousand  eight 
hundred  and  seventeen  inclusive,  at  the  rate  of  three  and 
one  half  per  centum  upon  the  original  capital ;  and  by  a 
dividend  to  be  made  on  the  last  da}*  of  December,  in  the  year 
one  thousand  eight  hundred  and  eighteen,  of  such  a  sum,  as 
will  then  be  adequate,  according  to  the  contract,  for  the  final 
redemption  of  the  said  stock. 

[Section  2  makes  similar  provision  for  the  reimbursement  of  the 
8-tock  bearing  six  per  cent  after  the  year  1800,  by  a  like  series  of  divi- 
dends beginning  March  31,  1801,  and  ending  December  31,  1824. 


179G.]  LOAN   FOR   REFUNDING   CERTAIN   DEBTS.  43 

Section  3  extends  these  provisions  to  all  balances  of  stock,  bearing  a 
present  or  deferred  interest  of  six  per  cent,  standing  to  the  credit  of  the 
states,  under  the  act  of  May  31,  1794 ;  and  Section  4  appropriates,  in  ad- 
dition to  sums  already  appropriated,  such  a  sum  of  the  duties  on  goods 
imported,  on  tonnage,  and  on  spirits  distilled  in  the  United  States  and 
on.  stills,  as  shall  he  sufficient,  with  monies  already  applicable,  to  reim- 
burse the  said  balances,  in  the  manner  directed.] 

[Approved,  April  28,  179G.    1  Statutes  at  Large,  458.] 

1795-96,  Chap.  XLIV. — An  Act  making  provision  for  the 
payment  of  certain  Debts  of  the   United  States. 

[Sections  1  and  2  authorize  the  commissioners  of  the  sinking  fund  to 
borrow  a  sum  not  exceeding  five  millions  of  dollars,  to  be  used  in  pay- 
ing the  capital  of  any  debt  due  by  the  United  States  to  the  Bank  of  the 
United  States,  or  to  the  Bank  of  New  York,  or  any  instalment  of  foreign 
debt,  the  loan  to  bear  an  imerest  of  six  per  cent,  payable  quarter- 
yearly,  and  to  be  redeemable  at  the  pleasure  of  the  United  States  after 
the  close  of  the  year  1819.  The  Bank  of  the  United  States  is  author- 
ized to  lend  the  whole  sum  and  to  sell  the  stock  received  therefor. 
Credits  for  the  sums  borrowed  are  to  be  entered  on  the  books  of  the 
treasury,  and  certificates  "  for  sums  not  less  than  one  hundred  dollars  " 
are  to  be  issued  by  the  Register,  and  are  to  be  transferable  and  the  in- 
terest thereon  is  to  be  payable,  as  provided  in  sections  7  and  8  of  the 
act  of  August  4,  1790.] 

SEC.  3.  And  be  it  further  enacted.  That  it  shall  be  deemed 
a  good  execution  of  the  power  to  borrow,  herein  granted,  for 
the  said  commissioners  of  the  sinking  fund  to  cause  to  be 
constituted  certificates  of  stock,  of  the  description  herein 
mentioned,  and  to  cause  the  same  to  be  sold  in  the  United 
States,  or  elsewhere :  Provided,  That  no  more  than  one 
moiety  of  the  said  stock  shall  be  sold  under  par.  And  it  shall 
be  lawful  for  the  commissioners  of  the  sinking  fund,  if  they 
shall  find  the  same  to  be  most  advantageous,  to  sell  such  and 
so  man}r  of  the  shares  of  the  stock  of  the  Bank  of  the  United 
States,  belonging  to  the  United  States,  as  they  may  think 
proper ;  and  that  the}'  apply  the  proceeds  thereof  to  the  pa}"- 
ment  of  the  said  debts,  instead  of  selling  certificates  of  stock, 
in  the  manner  prescribed  in  this  act.  And  such  of  the  reve- 
nues of  the  United  States,  heretofore  appropriated  for  the 
payment  of  interest  of  debts,  thus  discharged,  shall  be,  and 
the  same  are  hereby  pledged  and  appropriated,  towards  the 


44  FUNDING    OF    REVOLUTIONARY   DEBT  CLOSED.       [1798. 

payment  of  the  interest  and  instalments  of  the  principal 
which  shall  hereafter  become  due  on  the  loan  obtained  of  the 
Bank  of  the  United  States,  pursuant  to  the  eleventh  section 
of  the  act  for  incorporating  the  subscribers  to  the  said  bank. 
SEC.  4.  And  be  it  further  enacted,  That  such  of  the  reve- 
nues of  the  United  States,  heretofore  appropriated  for  the 
payment  of  interest  on  such  debts  as  may  be  liberated  or  set 
free,  by  payments  from  the  proceeds  of  the  loan  herein  pro- 
posed, together  with  such  further  sums  of  the  proceeds  of  the 
duties  on  goods,  wares,  and  merchandise  imported ;  on  the 
tonnage  of  ships  or  vessels ;  and  upon  spirits  distilled  in 
the  United  States,  and  stills  ;  as  may  be  necessary,  shall  be, 
and  the  same  are  hereby,  pledged  and  appropriated  for  the 
payment  of  the  interest,  which  shall  be  pa}-able  upon  the 
sums  subscribed  to  the  said  loan ;  and  shall  continue  so 
pledged  and  appropriated,  until  the  principal  of  the  said  loan 
shall  be  fully  reimbursed  and  redeemed. 

[Approved  May  31,  1796.     1  Statutes  at  Large,  488.] 

1796-97,  Chap.  XIV,  —  An  Act  to  authorize  the  receipt  of 
evidences  of  the  Public  Debt,  in  payment  for  the 
Lands  of  the  Lnited  States. 

Be  it  enacted,  .  .  .  That  the  evidences  of  the  public  debt 
of  the  United  States  shall  be  receivable  in  payment  for  any 
of  the  lands  which  may  be  hereafter  sold  in  conformity  to 
the  act  intituled  "An  Act  providing  for  the  sale  of  the 
lands  of  the  United  States  in  the  territory  northwest  of  the 
river  Ohio,  and  above  the  mouth  of  Kentucky  River,"  at 
the  following  rates,  viz. :  the  present  foreign  debt  of  the 
United  States,  and  such  debt,  or  stock,  as,  at  the  time  of 
payment,  shall  bear  an  interest  of  six  per  centum  per  an- 
num, shall  be  received  at  their  nominal  value  ;  and  the  other 
species  of  debt,  or  stock,  of  the  United  States,  shall  be 
received  at  a  rate  bearing  the  salne  proportion  to  their  re- 
spective market  price,  at  the  seat  of  government,  at  the  time 
of  payment,  as  the  nominal  value  of  the  above  mentioned 
six  per  centum  stock  shall,  at  the  same  time,  bear  to  its 


1798.J       FUNDING    OF    REVOLUTIONARY   DEBT   CLOSED.  45 

market  price  at  the  same  place ;  the  Secretary  of  the  Trea- 
sury, in  all  cases,  determining  what  such  market  price  is. 

[Approved,  March  3,  1797.     1  Statutes  at  Large.  507.] 

NOTE.  —  This  provision  is  also  made  applicable  under  the  act  of  May 
10,  1800,  amending  the  acts  providing  for  the  sale  of  public  lands. 
2  Statutes  at  Large,  74. 

1797-98,  Chap.  LI.  —  An  Act  respecting  loan  office  and  final 
settlement  certificates,  indents  of  interest,  and  the  un- 
funded or  registered  debt  credited  in  the  books  of  the 
Treasury, 

[By  section  1  the  time  fixed  by  section  14  of  the  act  of  March  3,  1795, 
for  the  presentation  of  loan  office  certificates,  final  settlements,  and  in- 
dents of  interest,  is  extended  for  one  year. 

Sections  2  and  3  provide  that  on  the  settlement  of  such  certificates 
and  indents  of  interest,  the  creditors  may  receive  three  per  cent,  stock  of 
the  United  States,  to  the  amount  of  the  indents  and  of  arrearages  of 
interest  on  certificates  accruing  prior  to  January  ],  1791;  and  that  the 
principal  sums  of  the  certificates,  with  interest  since  January  1,  1791, 
shall  be  discharged  by  reimbursement  equal  to  the  sum  which  would 
have  been  payable  if  the  certificates  had  been  subscribed,  and  by  pay- 
ment of  the  market  value  of  the  remaining  funded  stock  which  would 
have  been  created  by  such  subscription. 

The  remaining  sections  forbid  the  officers  of  the  treasury  to  issue  any 
further  certificates  of  registered  or  unfunded  debt;  require  the  commis- 
sioners of  the  sinking  fund  to  reimburse  the  principal  sums  of  the  un- 
funded or  registered  debt;  and  authorize  the  creditors  of  the  unfunded 
or  registered  debt  to  receive  three  per  cent,  stock  equal  to  the  arrearages 
of  interest  due  to  them  prior  to  January  1,  1791.] 

[Approved,  June  12,  1798.     1  Statutes  at  Large,  562.] 

1797-98,  Chap.  LXXIX.  —  An  Act  to  enable  the  President 
of  the  United  States  to  borrow  money  for  the  Public 

Service. 

[Section  1  authorizes  the  President  to  borrow  from  the  Bank  of  the 
United  States,  or  from  any  other  body,  or  from  any  person,  upon  such 
terms  as  he  shall  think  most  advantageous,  a  sum  not  exceeding  five 
millions  of  dollars,  provided  that  no  contract  shall  be  made  precluding 
the  reimbursement  of  such  loan  at  any  time  after  fifteen  years  from  its 
date.] 

SEC.  2.  And  be  it  further  enacted,  That  so  much  as  may 
be  necessary  of  the  surplus  of  the  duties  on  imports  and  ton- 


46  LOAN   OF   FIVE   MILLIONS.  [1798. 

nage  bej'ond  the  permanent  appropriations  heretofore  charged 
upon  them  b}r  law,  shall  be  and  hereby  is  pledged  and  appro- 
priated for  paying  the  interest  of  all  such  monies  as  may  be 
borrowed,  pursuant  to  this  act,  according  to  the  terms  and 
conditions  on  which  the  loan  or  loans,  respectively,  may  be 
effected  ;  and  also  for  paying  and  discharging  the  principal 
sum  or  sums  of  an 3-  such  loan  or  loans,  according  to  the  terms 
and  conditions  to  be  fixed,  as  aforesaid.  And  the  faith  of 
the  United  States  shall  be  and  hereby  is  pledged,  to  establish 
sufficient  permanent  revenues  for  making  up  any  deficiency 
that  may  hereafter  appear  in  the  provisions  for  paying  the 
said  interest  and  principal  sums,  or  any  of  them,  in  manner 
aforesaid . 

SEC.  3.  And  be  it  farther  enacted,  That  the  sums  to  be 
borrowed,  pursuant  to  this  act,  shall  be  paid  into  the  treasury 
of  the  United  States,  and  there  separately  accounted  for ;  and 
that  the  same  shall  be,  and  hereb}-  are  appropriated  in  man- 
ner following  :  First,  to  make  up  any  deficiency  in  any  appro- 
priation heretofore  made  by  law,  or  to  be  made,  during  the 
present  session  of  Congress ;  and,  secondly,  to  defray  the 
expenses  which  may  be  incurred  before  the  end  of  the  next 
session  of  Congress,  by  calling  into  actual  service  any  part  of 
the  rnilitia  of  the  United  States,  or  by  raising,  equipping,  and 
calling  into  actual  service,  any  regular  troops,  or  volunteers, 
pursuant  to  authorities  vested  or  to  be  vested  in  the  President 
of  the  United  States,  by  law. 

[Approved,  July  16,  1798.    1  Statutes  at  Large,  607.] 

NOTE.  —  By  an  act  with  the  same  title,  approved  May  7,  1800,  2  Stat- 
utes at  Large,  60,  provision  is  made  in  identical  terms  for  borrowing,  for 
the  same  purposes,  the  further  sum  of  three  millions  five  hundred  thou- 
sand dollars. 

1797-98,  Chap.  LXXXIV.  —  An  Act  making  certain  appro- 
priations /  and  to  authorize  the  President  to  obtain  a 
Loan  on  the  credit  of  the  direct  tax. 

SEC.  2.  And  be  it  further  enacted,  That  the  President  of 
the  United  States  shall  be,  and  he  is  hereby  authorized  to 


1799.]     SETTLEMENT   OF   BALANCES   DUE    FROM    STATES.  47 

borrow  of  the  Bank  of  the  United  States,  who  are  hereby 
enabled  to  lend  the  same,  or  of  any  other  corporation,  per- 
sons or  person,  the  sum  of  two  millions  of  dollars,  upon  the 
credit,  and  in  anticipation  of  the  direct  tax,  laid  and '  to 
be  collected  within  the  United  States ;  which  tax  shall  be, 
and  is  hereby  pledged  for  the  repayment  of  any  loan  which 
shall  be  obtained  thereon,  as  aforesaid ;  and  the  faith  of  the 
United  States  shall  be,  and  is  hereby  pledged  to  make  good 
any  deficiency:  Provided,  that  the  interest  to  be  allowed 
for  such  loan  shall  not  exceed  six  per  centum  per  annum, 
and  that  the  principal  shall  be  reimbursed  at  the  pleasure  of 
the  United  States. 

[Approved,  July  16,  1798.     1  Statutes  at  Large,  609.] 

1798-99,  Chap.  III.  —  An  Act  respecting  Balances  reported 
against  certain  States,  by  the  Commissioners  appointed 
to  settle  the  Accounts  between  the  United  States  and  the 
several  States. 

SECTION  1.  Be  it  enacted,  .  .  .  That  if  an}T  state,  against 
which  a  balance  was  reported  by  the  commissioners  appointed 
to  settle  the  accounts  between  the  United  States  and  the 
several  states,  shall,  on  or  before  the  first  day  of  April,  one 
thousand  eight  hundred,  by  a  legislative  act,  engage  to  pay 
into  the  treasury  of  the  United  States  within  five  years  after 
passing  such  legislative  act,  or  to  expend,  within  the  time 
last  mentioned,  in  erecting,  enlarging  or  completing  any  for- 
tifications for  the  defence  of  the  United  States  at  such  place 
or  places  the  jurisdiction  whereof,  having  been,  previously  to 
such  expenditure,  ceded  b}'  such  state  to  the  United  States, 
with  reservation  that  process  civil  and  criminal  issuing  under 
authority  of  such  state,  ma}*  be  served  and  executed  therein, 
and  according. to  such  plan  or  plans  as  shall  be  approved  by 
the  President  of  the  United  States,  a  suni  in  money,  or  in 
stock  of  the  United  States,  equal  to  the  balance  reported  as 
aforesaid,  against  such  state,  or  to  the  sum  assumed  by  the 
United  States  in  the  debt  of  such  state,  such  payment  or 
expenditure,  when  so  made,  shall  be  accepted  by  the  United 


48       DUTY  OF  THE  SECRETARY  OF  THE  TREASURY.   [1800. 

States  as  a  full  discharge  of  all  demands  on  account  of  said 
•  balance  ;  and  the  President  of  the  United  States  shall  be,  and 
hereby  is  authorized  to  cause  credit  to  be  given  to  such  state 
on  the  books  of  the  treasun'  of  the  United  States  accordingly  : 
Provided  hoivever,  that  no  more  than  one  third  part  of  the 
whole  payment  or  expenditure  that  may  be  made  by  any  such 
state  shall  be  made  in  three  per  cent,  stock,  nor  more  than 
one  third  part  of  the  remaining  two  thirds  shall  be  made  in 
deferred  stock  :  And  provided  also,  that  an)*  such  state  may 
obtain  a  full  discharge,  as  aforesaid,  by  the  payment  or  ex- 
penditure of  a  sum  of  money,  sufficient  in  the  opinion  of  the 
Secretary  of  the  Treasury,  to  purchase,  at  market  price,  the 
different  species  of  stock,  the  pa\-ment  or  expenditure  of 
which  would  be  accepted  as  a  full  discharge,  as  aforesaid. 

SEC.  2.  Provided  always,  and  be  it  further  enacted,  That 
if  any  such  state  as  is  aforesaid  shall  have  expended,  since 
the  establishment  of  the  present  government  of  the  United 
States,  any  sum  of  money  in  fortifying  an}'  place  since  ceded 
by  such  state  to  the  United  States,  or  which  may  be  so  ceded, 
within  one  }"ear  after  the  passage  of  this  act,  such  expendi- 
ture having  been  ascertained  and  proved  to  the  satisfaction 
of  the  Secretary  of  the  Treasury,  shall  be  taken  and  allowed 
as  part  of  the  expenditure  intended  by  this  act. 

[Approved,  February  13,  1799.     1  Statutes  at  Large,  616.] 

1799-1800,  Chap.  LVIII.  —  An  Act  supplementary  to  the  act 
entitled  "cm  Act  to  establish  the  Treasury  Department." 

JBe  it  enacted  .  .  .  That  it  shall  be  the  duty  of  the  Secre- 
tary of  the  Treasury  to  digest,  prepare  and  lay  before  Con- 
gress at  the  commencement  of  eveiy  session,  a  report  on  the 
subject  of  finance,  containing  estimates  of  the  public  revenue 
and  public  expenditures,  and  plans  for  improving  or  increas- 
ing the  revenues,  from  time  to  time,  for  the  purpose  of  giving 
information  to  Congress  in  adopting  modes  of  raising  the 
money  requisite  to  meet  the  public  expenditures. 

[Approved,  May  10,  1800.    2  Statutes  at  Large,  79.] 


1802.]          FUND   FOR   REDEEMING   TIIE   WHOLE    DEBT.  49 

1801-2,  Chap.  XXXII.  —  An  Act  making  provision  for  the 
redemption  of  the  whole  of  the  Public  Debt  of  the  United 
States. 

.  JBe  it  enacted  .  .  .  That  so  much  of  the  duties  on  mer- 
chandise and  tonnage  as,  together  with  the  monies,  other  than 
surpluses  of  revenue,  which  now  constitute  the  sinking  fund, 
or  shall  accrue  to  it  by  virtue  of  any  provisions  heretofore 
made,  and  together  with  the  sums  annually  required  to  dis- 
charge the  annual  interest  and  charges  accruing  on  the  present 
debt  of  the  United  States,  including  temporary  loans  hereto- 
fore obtained,  and  also  future  loans  which  may  be  made  for 
reimbursing,  or  redeeming,  an}-  instalments,  or  parts  of  the 
principal  of  the  said  debt,  will  amount  to  an  annual  sum 
of  seven  millions  three  hundred  thousand  dollars,  be,  and  the 
same  hereby  is  yearly  appropriated  to  the  said  fund ;  and 
the  said  sums  are  hereby  declared  to  be  vested  in  the  com- 
missioners of  the  sinking  fund,  in  the  same  manner  as  the 
monies  heretofore  appropriated  to  the  said  fund,  to  be  ap- 
plied by  the  said  commissioners  to  the  payment  of  interest 
and  charges,  and  to  the  reimbursement  or  redemption  of  the 
principal  of  the  public  debt,  and  shall  be  and  continue  ap- 
propriated until  the  whole  of  the  present  debt  of  the  United 
States,  and  the  loans  which  may  be  made  for  reimbursing  or 
redeeming  anv  parts  or  instalments  of  the  principal  of  the 
said  debt  shall  be  reimbursed  and  redeemed :  Provided,  that 
after  the  whole  of  the  said  debt,  the  old  six  per  cent,  stock, 
the  deferred  stock,  the  seventeen  hundred  and  ninety  six  six 
per  cent  stock  and  three  per  cent,  stock  excepted.  shall  have 
been  reimbursed  or  redeemed,  any  balance  of  the  sums  an- 
nually appropriated  by  this  act,  which  may  remain  unex- 
pended at  the  end  of  six  months  next  succeeding  the  end  of 
the  calendar  year  to  which  such  annual  appropriation  refers, 
shall  be  carried  to  the  surplus  fund,  and  cease  to  be  vested 
b}-  virtue  of  this  act  in  the  commissioners  of  the  sinking  fund,, 
and  the  appropriation,  so  far  as  relates  to  such  unexpended 
balance,  shall  cease  and  determine. 

SEC.  2.   And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Secretary  of  the  Treasury  annually,  and  in  each 

4 


50  PAYMENTS   TO    BE   MADE.  [1802. 

year,  to  cause  to  be  paid  to  the  commissioners  of  the  sinking 
fund  the  said  sum  of  seven  millions  three  hundred  thousand 
dollars,  in  such  payments,  and  at  such  times,  in  each  year 
as  the  situation  of  the  treasury  will  permit :  Provided,  that 
all  such  payments  as  may  be  necessary  to  enable  the  said 
commissioners  to  discharge,  or  reimburse,  any  demands 
against  the  United  States,  on  account  of  the  principal  or 
interest  of  the  debt,  which  shall  be  actually  due,  in  con- 
formity to  the  engagements  of  the  said  states,  shall  be  made 
at  such  time  and  times,  in  each  year  as  will  enable  the  said 
commissioners  faithfully  and  punctually  to  comply  with  such 
engagement. 

SEC.  3.  And  be  it  further  enacted,  That  all  reimburse- 
ments of  the  capital,  or  principal  of  the  present  debt  of  the 
United  States,  including  future  loans  which  may  be  made 
for  reimbursing  or  redeeming  any  instalments,  or  parts  of 
the  same,  and  all  payments  on  account  of  the  interest  and 
charges  accruing  upon  the  said  debt  shall  be  made  under  the 
superintendence  of  the  commissioners  of  the  sinking  fund. 
And  it  shall  be  the  duty  of  the  said  commissioners  to  cause 
to  be  applied  and  paid  out  of  the  said  fund,  yearly  and  every 
year,  at  the  treasury  of  the  United  States,  the  several  and 
respective  sums  following,  to  wit :  first,  such  sum  and  sums 
as  by  virtue  of  any  act  or  acts,  the}*  have  heretofore  been 
directed  to  apply  and  to  pa}' :  second!}",  such  sum  and  sums 
as  may  be  annually  wanted  to  discharge  the  annual  interest 
and  charges  accruing  on  any  other  part  of  the  present  debt 
of  the  United  States,  including  the  interest  and  charges 
which  may  accrue  on  future  loans  which  may  be  made  for 
reimbursing  or  redeeming  any  instalments,  or  parts  of  the 
principal  of  the  said  debt :  thirdly,  such  sum  and  sums  as 
may  annually  be  required  to  discharge  any  instalment  or 
part  of  the  principal  of  the  present  debt  of  the  United  States, 
and  of  any  future  loans  which  may  be  made  for  reimbursing, 
or  discharging  the  same,  which  shall  be  actually  due  and 
demandable,  and  which  shall  not  by  virtue  of  this,  or  any 
other  act,  be  renewed  or  prolonged,  or  reimbursed,  out  of 
the  proceeds  of  a  new  loan :  and  also  it  shall  be  the  duty 


1802.]      LOANS  FOR  THE  DISCHARGE  OF  DEBT.          51 

of  the  said  commissioners  to  cause  to  be  applied  the  surplus 
of  such  fund  as  may  at  any  tyne  exist,  after  satisfying  the 
purposes  aforesaid,  towards  the  further  and  final  redemp- 
tion, by  pa3'ment,  or  purchase,  of  the  present  debt  of  the 
United  States,  including  loans  for  the  reimbursement  thereof, 
temporary  loans  heretofore  obtained  from  the  Bank  of  the 
United  States,  and  those  demands  against  the  United  States, 
under  any  treat}',  or  convention,  with  a  foreign  power,  for 
the  payment  of  which  the  faith  of  the  United  States  has 
been,  or  may  hereafter  be  pledged  by  Congress :  Provided, 
however,  that  the  whole,  or  any  part,  of  such  demands,  aris- 
ing under  a  treat}*,  or  convention,  with  a  foreign  power, 
and  of  such  temporary  loans,  may,  at  anv  time,  be  reim- 
bursed, either  out  of  the  sinking  fund,  or,  if  the  situation  of 
the  treasury  will  permit,  out  of  any  other  monies  which  have 
been,  or  may  hereafter  be,  appropriated  to  that  purpose. 

[Section  4  empowers  the  commissioners  to  borrow,  at  home  or 
abroad,  the  sums  requisite  for  payment  of  the  instalments  of  the  Dutch 
debt,  falling  due  in  the  years  from  1803  to  1806,  and  requires  that  a 
like  sum  shall  be  laid  out  in  the  payment  or  redemption  of  the  present 
debt  of  the  United  States,  so  as  to  effect  the  annual  payment  of  seven 
million  three  hundred  thousand  dollars  agreeably  to  the  provision  made 
above ;  but  any  loan  thus  made  shall  be  reimbursable  within  six  years 
from  its  date,  and  the  rate  of  interest  thereon  shall  not  exceed  five  per 
cent.,  nor  shall  the  charges  exceed  five  per  cent  of  the  capital  bor- 
rowed. The  power  thus  given  is  not  to  diminish  or  affect  the  power 
to  borrow  given  to  the  commissioners  by  section  10  of  the  Act  of 
March  3,  171)5,  on  page  88,  or  the  power  to  sell  the  shares  of  the  Bank 
of  the  United  States  belonging  to  the  government,  given  by  section  3 
of  the  Act  of  May  31,  179i5,  on  page  43. 

Sections  5  and  6  authorize  the  commissioners,  with  the  approbation 
of  the  President,  to  contract  with  any  bank  or  individual  for  the  pay- 
ment, in  Holland,  of  any  part  of  the  Dutch  debt  and  its  interest,  or  to 
employ  an  agent  for  procuring  remittances  for  the  discharge  of  said 
debt  or  its  interest,  allowing  therefor  a  compensation  not  exceeding  one 
fourth  of  one  per  cent,  on  the  remittances  procured.  And  the  com- 
missioners are  empowered,  in  like  manner,  to  employ  an  agent  in 
Europe,  for  the  transaction  of  any  business  relative  to  the  discharge  of 
the  Dutch  debt,  or  of  any  loan  authorized  for  the  discharge  thereof.] 

SEC.  7.  And  be  it  further  enacted,  That  nothing  in  this 
act  contained  shall  be  construed  to  repeal,  alter,  or  affect 


52  FAITH   HERETOFORE   PLEDGED   TO   BE   KEPT.         [1804. 

an}'  of  the  provisions  of  any  former  act  pledging  the  faith  of 
the  United  States  to  the  paj-ment  of  the  interest,  or  princi- 
pal, of  the  public  debt;  and  that  all  such  payments  shall 
continue  to  be  made  at  the  time  heretofore  prescribed  by 
law ;  and  the  surplus  only  of  the  appropriations  made  by 
this  act  beyond  the  sums  pa}-able  by  virtue  of  the  provisions 
of  any  former  act,  shall  be  applicable  to  the  reimbursement, 
redemption,  or  purchase  of  the  public  debt  .in  the  manner 
provided  by  this  act. 

SEC.  8.  And  be  it  further  enacted,  That  all  the  restric- 
tions and  regulations  heretofore  established  by  law,  for 
regulating  the  execution  of  the  duties  enjoined  upon  the 
commissioners  of  the  sinking  fund,  shall  apply  to  and  be 
in  as  full  force  for  the  execution  of  the  analogous  duties  en- 
joined by  this  act,  as  if  they  were  herein  particularly  repeated 
and  re-enacted.  Provided,  however,  that  the  particular  an- 
nual account  of  all  sales  of  stock,  of  loans,  and  of  payments, 
by  them  made,  shall,  hereafter,  be  laid  before  Congress  on 
the  first  week  of  February,  in  each  }'ear ;  and  so  much  of  any 
former  act  as  directed  such  account  to  be  laid  before  Con- 
gress within  fourteen  da}-s  after  their  meeting,  is  hereby 

repealed. 

[Approved,  April  29,  1802.    2  Statutes  at  Large,  167.] 

1803-4,  Chap.  II.  —  An  Act  authorizing  the  creation  of  a 
stock,  to  the  amount  of  eleven  millions  two  hundred  and 
fifty  thousand  dollars,  for  the  purpose  of  carrying  into 
effect  the  convention  of  the  thirtieth  of  April,  one  thou- 
sand eight  hundred  and  three,  between  the  United  States 
of  America  and  the  French  Republic;  and  making  pro- 
vision for  the  payment  of  the  same. 

He  it  enacted,  .  .  .  That  for  the  purpose  of  cam-ing  into 
effect  the  convention  of  the  thirtieth  day  of  April,  one  thou- 
sand eight  hundred  and  three,  between  the  United  States  of 
America  and  the  French  Republic,  the  Secretary  of  the 
Treasur}7  be,  and  he  is  hereby  authorized,  to  cause  to  be 
constituted,  certificates  of  stock,  signed  by  the  register  of  the 
treasury,  in  favor  of  the  French  Republic,  or  of  its  as- 


1804.]          LOAN   FOR   THE   PURCHASE   OF   LOUISIANA.  53 

signees,  for  the  sum  of  eleven  millions  two  hundred  and  fifty 
thousand  dollars,  bearing  an  interest  of  six  per  centum  per 
annum,  from  the  time  when  possession  of  Louisiana  shall 
have  been  obtained,  in  conformity  with  the  treaty  of  the 
thirtieth  day  of  April,  one  thousand  eight  hundred  and  three, 
between  the  United  States  of  America  and  the  French  Re- 
public, and  in  other  respects  conformable  with  the  tenor  of 
the  convention  aforesaid ;  and  the  President  of  the  United 
States  is  authorized  to  cause  the  said  certificates  of  stock  to 
be  delivered  to  the  government  of  France,  or  to  such  per- 
son or  persons  as  shall  be  authorized  to  receive  them,  in 
three  months  at  most,  after  the  exchange  of  the  ratifications 
of  the  treaty  aforesaid,  and  after  Louisiana  shall  be  taken 
possession  of  in  the  name  of  the  government  of  the  United 
States;  and  credit,  or  credits,  to  the  proprietors  thereof, 
shall  thereupon  be  entered  and  given  on  the  books  of  the 
treasury,  in  like  manner  as  for  the  present  domestic  funded 
debt,  which  said  credits  or  stock  shall  thereafter  be  trans- 
ferable only  on  the  books  of  the  treasury  of  the  United 
States,  by  the  proprietor  or  proprietors  of  such  stock,  his, 
her,  or  their  attorney :  and  the  faith  of  the  United  States  is 
hereby  pledged  for  the  pa3-ment  of  the  interest,  and  for  the 
reimbursement  of  the  principal  of  the  said  stock,  in  con- 
formity with  the  provisions  of  the  said  convention :  Pro- 
vided, koioever,  that  the  Secretary  of  the  Treasury  may, 
with  the  approbation  of  the  President  of  the  United  States, 
consent  to  discharge  the  said  stock  in  four  equal  annual  in- 
stalments, and  also  shorten  the  periods  fixed  by  the  conven- 
tion for  its  reimbursement :  And  provided  also,  that  every 
proprietor  of  the  said  stock  ma_y,  until  otherwise  directed  by 
law,  on  surrendering  his  certificate  of  such  stock,  receive 
another  to  the  same  amount,  and  bearing  an  interest  of  six 
per  centum  per  annum,  payable  quarter-yearly  at  the  treasury 
of  the  United  States. 

[By  the  Act  of  July  1,  1812,  the  stock  created  as  above  is  made  trans- 
ferable like  other  stocks  of  the  United  States,  from  the  books  of  the 
treasury  to  those  of  any  commissioner,  and  from  the  books  of  one 
commissioner  to  those  of  another  or  to  those  of  the  treasury.  2  Stat- 
utes at  Large,  771.] 


54  INCREASE    OF   THE    SINKING   FUND.  [1804. 

SEC.  2.  And  be  it  further  enacted,  That  the  annual  inter- 
est accruing  on  the  said  stock,  which  may,  in  conformity 
with  the  convention  aforesaid,  be  payable  in  Europe,  shall 
be  paid  at  the  rate  of  four  shillings  and  sixpence  sterling 
for  each  dollar,  if  pa3'able  in  London,  and  at  the  rate  of  two 
guilders  and  one  half  of  a  guilder,  current  money  of  Holland, 
for  each  dollar,  if  payable  in  Amsterdam. 

SEC.  3.  And  be  it  farther  enacted,  That  a  sum  equal  to 
what  will  be  necessary  to  pay  the  interest  which  may  accrue 
on  the  said  stock  to  the  end  of  the  present  year,  be,  and  the 
same  is  hereby  appropriated  for  that  purpose,  to  be  paid  out 
of  any  monies  in  the  treasury  not  otherwise  appropriated. 

SEC.  4.  And  be  it  further  enacted,  That  from  and  after 
the  end  of  the  pi'esent  }*ear  (in  addition  to  the  annual  sum 
of  seven  millions  three  hundred  thousand  dollars  yearly 
appropriated  to  the  sinking  fund,  by  virtue  of  the  act  inti- 
tuled "  An  act  making  provision  for  the  redemption  of  the 
whole  of  the  public  debt  of  the  United  States"),  a  further 
annual  sum  of  seven  hundred  thousand  dollars,  to  be  paid 
out  of  the  duties  on  merchandise  and  tonnage,  be,  and  the 
same  hereb}*  is,  yearly  appropriated  to  the  said  fund,  making 
in  the  whole,  an  annual  sum  of  eight  millions  of  dollars, 
which  shall  be  vested  in  the  commissioners  of  the  sinking 
fund  in  the  same  manner,  shall  be  applied  bj"  them  for  the 
same  purposes,  and  shall  be,  and  continue  appropriated, 
until  the  whole  of  the  present  debt  of  the  United  States, 
inclusively  of  the  stock  created  by  virtue  of  this  act,  shall 
be  reimbursed  and  redeemed,  under  the  same  limitations  as 
have  been  provided  by  the  first  section  of  the  above-men- 
tioned act,  respecting  the  annual  appropriation  of  seven 
millions  three  hundred  thousand  dollars,  made  bj-  the  same. 

SEC.  5.  And  be  it  farther  enacted,  That  the  Secretary 
of  the  Treasury  shall  cause  the  said  further  sum  of  seven 
hundred  thousand  dollars  to  be  paid  to  the  commissioners  of 
the  sinking  fund,  in  the  same  manner  as  was  directed  by  the 
above-mentioned  act  respecting  the  annual  appropriation  of 
seven  millions  three  hundred  thousand  dollars  ;  and  it  shall 
be  the  dutv  of  the  commissioners  of  the  sinking  fund  to  cause 


1806.]  PURCHASES   OF  THE   PUBLIC   DEBT.  55 

to  be  applied  and  paid  out  of  the  said  fund,  yearly,  and 
every  }'ear,  at  the  treasuiy  of  the  United  States,  such  sum 
and  sums  as  ma}-  be  annually  wanted  to  discharge  the  annual 
interest  and  charges  accruing  on  the  stock  created  by  virtue 
of  this  act,  and  the  several  instalments,  or  parts  of  princi- 
pal of  the  said  stock,  as  the  same  shall  become  due  and  may 
be  discharged,  in  conformity  to  the  terms  of  the  convention 
aforesaid,  and  of  this  act. 

[Approved,  November  10,  1803.    2  Statutes  at  Large,  245.] 

1805-6,  Chap.  L.  —  An  Act  to  repeal  so  much  of  any  act  or 
acts  as  authorize  the  receipt  of  evidences  of  the  public 
debt,  in  payment  for  lands  of  the  United  /States;  and 
for  other  purposes,  relative  to  the  public  debt. 

Be  it  enacted,  .  .  .  That  so  much  of  any  act  or  acts  as 
authorize  the  receipt  of  evidences  of  the  public  debt,  in  pa}-- 
ment  for  the  lands  of  the  United  States,  shall  from  and  after 
the  thirtieth  day  of  April,  one  thousand  eight  hundred  and 
six,  be  repealed :  Provided,  that  the  right  of  all  persons 
who  may  have  purchased  public  lands  previous  to  the  pas- 
sage of  this  act,  to  pay  for  the  same  in  stock,  shall  in  no 
wise  be  affected  or  impaired :  And  provided  further,  that 
there  shall  be  allowed  on  every  payment  made  in  mone}*,  at 
or  before  the  same  shall  fall  due,  for  lands  purchased  before 
the  thirtieth  day  of  April,  one  thousand  eight  hundred  and 
six,  in  addition  to  the  discounts  now  allowed  by  law,  a  de- 
duction equal  to  the  difference  at  the  time  of  such  paj'inent, 
between  the  market  price  of  six  per  cent,  stock  and  the 
nominal  value  of  its  unredeemed  amount,  which  market  price 
shall,  from  time  to  time,  be  stated  by  the  Secretary  of  the 
Treasury  to  the  officers  of  the  several  land-offices. 

SEC.  2.  And  be  it  further  enacted,  That  the  commission- 
ers of  the  sinking  fund  shall  not  be  authorized  to  purchase 
am*  of  the  several  species  of  the  public  debt,  at  a  higher 
price  than  at  the  rates  following,  that  is  to  say ;  they  shall 
not  pay  more  for  three  per  cent,  stock  than  sixt}-  per  cent, 
of  its  nominal  value  ;  nor  for  any  other  species  of  the  public 
debt  more  than  the  nominal  value  of  its  unredeemed  amount, 


56  PROPOSED   EXCHANGE    OF    STOCKS.  [1807. 

the  eight  per  cent,  stock  only  excepted ;  for  which  they 
shall  be  authorized,  in  addition  thereto,  to  give  at  the  rate 
of  one  half  of  one  per  cent,  on  the  said  nominal  value,  for 
each  quarterly  dividend  which  may  be  payable  on  such  pur- 
chased stock,  from  the  time  of  such  purchase  to  the  first  day 
of  January,  one  thousand  eight  hundred  and  nine. 

SEC.  3.  And  be  it  further  enacted,  That  so  much  of  any 
act  as  directs  that  purchases  of  the  public  debt,  by  the  com- 
missioners of  the  sinking  fund,  shall  be  made  within  the 
thirty  days  next  ensuing  after  each  day  on  which  a  quarterly 
payment  of  interest  on  the  debt  of  the  United  States  shall 
become  due :  and  also  so  much  of  any  act  as  directs  that  the 
said  purchases  shall  be  made  by  open  purchase  or  by  sealed 
proposals,  be,  and  the  same  herein1  is  repealed.  And  the 
said  commissioners  are  hereby  authorized  to  make  such  pur- 
chases, under  the  restfictions  laid  by  the  preceding  section, 
in  such  manner,  and  at  such  times  and  places  as  the}-  shall 
deem  most  eligible  ;  and  for  that  purpose  to  appoint  a  known 
agent  or  agents,  to  whom  they  ma}"  allow  a  commission,  not 
exceeding  one  fourth  of  one  per  cent,  on  the  respective  pur- 
chases of  such  agents. 

[Approved,  April  18,  1806.     2  Statutes  at  Large,  405.] 

1806-7,  Chap.  XII.  —  An  Act  supplementary  to  the  act,  in- 
tituled "An  act  making  provision  for  the  redemption 
of  the  whole  of  the  public  debt  of  the  United  States." 

WHEREAS  it  is  desirable  to  adapt  tlie  nature  of  the  provision  for 
the  redemption  of  the  public  debt  to  the  present  circumstances 
of  the  United  States,  which  can  only  be  done  by  a  voluntary 
subscription  on  the  part  of  the  creditors  : 

Be  it  enacted,  .  .  .  That  a  subscription  to  the  full  amount 
of  the  old  six  per  cent,  deferred  and  three  per  cent,  stocks 
be,  and  the  same  is  hereby  proposed  ;  for  which  purpose 
books  shall  be  opened  at  the  treasury  of  the  United  States, 
and  by  the  several  commissioners  of  loans,  on  the  first  day 
of  July  next,  to  continue  open  until  the  seventeenth  day  of 
March  next  following,  inclusively,  the  fourteen  last  days  of 


1807.]  TERMS    OF   EXCHANGE   OFFERED.  57 

each  quarter  exceptcd,  for  such  parts  of  the  above  mentioned 
descriptions  of  stock,  as  shall,  on  the  day  of  subscription, 
stand  on  the  books  of  the  treasury,  and  of  the  several  com- 
missioners of  loans,  respective^" ;  which  subscription  shall 
be  effected  by  a  transfer  to  the  United  States,  in  the  manner 
provided  by  law  for  such  transfers,  of  the  credit  or  credits 
standing  on  the  said  books,  and  by  a  surrender  of  the  certifi- 
cates of  the  stock  subscribed. 

SEC.  2.  And  be  it  further  enacted,  That  for  the  whole  or 
any  part  of  any  sum  which  shall  thus  be  subscribed,  in  old 
six  per  cent,  or  deferred  stock,  credits  shall  be  entered  to  the 
respective  subscribers,  and  the  subscriber  or  subscribers  shall 
be  entitled  to  a  certificate,  or  certificates,  purporting  that  the 
United  States  owe  to  the  holder  or  holders  thereof,  his,  her, 
or  their  assigns,  a  sum  to  be  expressed  therein,  equal  to  the 
amount  of  principal  of  the  stock  thus  subscribed,  which  shall 
remain  unredeemed  on  the  day  of  such  subscription,  bear- 
ing an  interest  of  six  per  centum  per  annum,  payable  quarter 
yearby,  from  the  first  day  of  the  quarter,  during  which  such 
subscription  shall  have  been  made,  transferable  in  the  same 
manner  as  is  provided  by  law  for  the  transfers  of  the  stock 
subscribed,  and  subject  to  redemption  at  the  pleasure  of  the 
United  States :  Provided,  that  no  single  certificate  shall  be 
issued  for  an  amount  greater  than  ten  thousand  dollars : 
And  provided  farther,  that  no  reimbursement  shall  be  made 
except  for  the  whole  amount  of  any  such  new  certificate,  nor 
till  after  at  least  six  months'  previous  public  notice  of  such 
intended  reimbursement. 

SEC.  3.  And  be  it  further  enacted,  That  for  the  whole  or 
any  part  of  any  sum  which  shall  thus  be  subscribed  in  three 
per  cent,  stock,  credits  shall  likewise  be  entered  to  the  re- 
spective subscribers ;  and  the  subscriber,  or  subscribers, 
shall  be  entitled  to  a  certificate,  purporting  that  the  United 
States  owe  to  the  holder  or  holders  thereof,  his,  her,  or  their 
assigns,  a  sum  to  be  expressed  therein,  equal  to  sixt}--five 
per  centum  of  the  amount  of  the  principal  of  the  stock  thus 
subscribed,  bearing  an  interest  of  six  per  centum,  per  an- 
num, payable  quarter  yearly,  from  the  first  day  of  the  quar- 


58       FUNDS  PLEDGED  FOR  THE  NEW  STOCK.        [1808. 

ter,  during  which  such  subscription  shall  have  been  made, 
aud  transferable  and  subject  to  redemption  in  the  same  man- 
ner, and  under  the  same  regulations  and  restrictions,  as  the 
stock  created  by  the  preceding  section  of  this  act :  Provided, 
that  no  part  of  the  stock  thus  created,  shall  be  reimbursable 
without  the  assent  of  the  holder,  or  holders  of  such  stock, 
until  after  the  whole  of  the  eight  per  cent,  and  four  aud  a 
half  per  cent,  stocks,  as  well  as  all  the  six  per  cent,  stock 
which  may  be  created  by  virtue  of  the  preceding  section, 
shall  have  been  redeemed. 

[Section  4  authorizes  the  commissioners  of  the  sinking  fund  to  ap- 
point an  agent  in  London  and  another  in  Amsterdam,  to  receive  sub- 
scriptions and  transfers  and  to  issue  new  certificates  in  favor  of 
stockholders  residing  in  Europe. 

Section  5  provides  that  stockholders  subscribing  either  in  the  United 
States  or  in  Europe,  but  resident  in  Europe,  may  at  tlieir  option  receive 
the  interest  on  the  new  stock  either  in  the  United  States  or  in  London 
or  Amsterdam ;  if  in  London,  at  the  rate  of  four  shillings  and  sixpence 
sterling  for  the  dollar,  and  if  in  Amsterdam  at  the  rate  of  two  and  a 
half  guilders  for  the  dollar,  credits  therefor  being  entered  and  transferable 
only  on  the  books  of  the  treasury  :  proiided,  that  the  interest  thus  paya- 
ble abroad  shall  not  be  payable  until  six  months  after  the  day  for  pay- 
ment in  the  United  States,  and  shall  be  subject  to  a  deduction  of  one 
half  of  one  per  cent,  on  its  amount  for  commission ;  and  provided  also, 
that  the  certificates  of  stock  thus  held  may  be  exchanged  for  others 
bearing  interest  payable  in  the  United  States.] 

SEC.  6.  And  be  it  further  enacted,  That  the  same  funds 
which  heretofore  have  been,  and  now  are,  pledged,  by  law, 
for  the  payment  of  the  interest,  and  for  the  redemption  or 
reimbursement  of  the  stock  which  may  be  subscribed  by  vir- 
tue of  the  provisions  of  this  act,  shall  remain  pledged  for 
the  payment  of  interest  accruing  on  the  stock  created  by 
reason  of  such  subscription,  and  for  the  redemption  or  reim- 
bursement of  the  principal  of  the  same.  It  shall  be  the  duty 
of  the  commissioners  of  the  sinking  fund  to  cause  to  be  ap- 
plied, and  paid  out  of  the  said  fund,  yearly,  and  every  year, 
such  sum,  and  sums,  as  may  be  annually  wanted  to  discharge 
the  annual  interest  and  charges  accruing  on  the  stock  which 
ma}*  be  created  by  virtue  of  this  act.  The  said  commission- 
ers are  hereby  authorized  to  apply,  from  time  to  time,  such 


1809.]  MODE    OF   REIMBURSEMENT.  59 

sum  and  sums,  out  of  the  said  fund,  as  they  ma}'  think 
proper,  towards  redeeming,  by  purchase,  or  by  reimburse- 
ment, in  conformit}*  with  the  provisions  of  this  act,  the 
principal  of  the  said  stock.  And  the  annual  sum  of  eight 
millions  of  dollars,  vested  by  law  in  the  said  commissioners, 
shall  be,  and  continue  appropriated  to  the  payment  of  inter- 
est and  redemption  of  the  public  debt,  until  the  whole  of  the 
stock  which  may  be  created  by  the  preceding  sections  of  this 
act,  shall  have  been  redeemed,  or  reimbursed. 

SEC.  8.  And  be  it  farther  enacted,  That  whensoever  notice 
of  reimbursement  shall  be  given,  as  prescribed  by  the  second 
and  third  sections  of  this  act,  the  certificates  intended  to  be 
reimbursed,  shall  be  designated  therein.  In  every  reim- 
bursement the  preference  shall  be  given  to  such  holders  of 
certificates  as,  previous  to  the  said  notice,  shall  have  notified 
in  writing  to  the  treasury  department  their  wish  to  be  reim- 
bursed. If  there  should-  not  be  applications  to  the  treasury 
sufficient  to  require  the  pa3'ment  of  the  whole  sum  to  be 
applied  to  that  purpose,  the  Secretary  of  the  Treasury,  after 
paying  off  all  sums  for  the  payment  of  which  application 
shall  have  been  made,  shall  determine,  by  lot,  what  other 
certificates  shall  be  reimbursed  so  as  to  make  up  the  whole 
amount  to  be  discharged :  and  in  case  the  applications  shall 
exceed  the  amount  to  be  discharged,  the  Secretary  of  the 
Treasury  shall  proceed  to  determine,  by  lot,  what  applica- 
tions shall  be  entitled  to  priority  of  payment. 

SEC.  10.  And  be  it  further  enacted,  That  nothing  in  this 
act  contained  shall  be  construed,  in  any  wise,  to  alter, 
abridge,  or  impair  the  rights  of  those  creditors  of  the  United 
States,  who  shall  not  subscribe  to  the  loan  created  by  virtue 

of  this  act. 

[Approved,  February  11,  1807.     2  Statutes  at  Large,  415.] 

1808-9,  Chap.  XXVIII.  —  An  Act  further  to  amend  the 
several  acts  for  the  establishment  and  regulation  of 
the  Treasury,  War,  and  Navy  departments. 

[Section  4  provides  that  disbursing  agents  for  the  army  and  navy 
"  shall,  whenever  practicable,  keep  the  public  monies  in  their  hands,  in 


60  LOAN    FOR   REIMBURSING   DEBT.  [1810. 

some  incorporated  bank,  to  be  designated  for  the  purpose  by  the  Presi- 
dent of  the  United  States,"  and  shall  make  monthly  returns  thereof.] 

[Approved,  March  3,  1809.    2  Statutes  at  Large,  535.] 

1809,  Chap.  X.  —  An  Act  supplementary  to  the  act,  intituled 
'•'•An  Act  making  further  provision  for  the  support 
of  public  credit,  and  for  the  redemption  of  the  public 
debt." 

Be  it  enacted,  .  .  .  That  the  powers  vested  in  the  com- 
missioners of  the  sinking  fund,  by  the  tenth  section  of  the 
act  to  which  this  act  is  a  supplement,  shall  extend  to  all 
the  cases  of  reimbursement  of  any  instalments  or  parts  of 
the  capital,  or  principal,  of  the  public  debt  now  existing, 
which  may  become  payable  according  to  law.  And  in  every 
case  in  which  a  loan  may  be  made  accordingly,  it  shall  be 
lawful  for  such  loan  to  be  made  of  the  Bank  of  the  United 
States,  anything  in  any  act  of  Congress  to  the  contrary 
notwithstanding. 

[Approved,  June  28,  1809.    2  Statutes  at  Large,  551.] 

1809-10,  Chap.  XLV.  —  An  Act  authorizing  a  loan  of 
money,  for  a  sum  not  exceeding  the  amount  of  the 
principal  of  the  public  debt,  reimbursable  during  the 
year  one  thousand  eight  hundred  and  ten. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United 
States  be,  and  he  is  hereby  empowered  to  borrow,  on  the 
credit  of  the  United  States,  a  sum  not  exceeding  the  amount 
of  the  principal  of  the  public  debt,  which  will  be  reimbursed, 
according  to  law,  during  the  present  year,  by.  the  commis- 
sioners of  the  sinking  fund,  at  a  rate  of  interest,  payable 
quarter  yearly,  not  exceeding  six  per  centum  per  annum,  and 
reimbursable  at  the  pleasure  of  the  United  States,  or  at  such 
period  as  may  be  stipulated  by  contract,  not  exceeding  six 
years  from  the  first  da}1  of  January  next ;  to  be  applied,  in 
addition  to  the  monies  now  in  the  treasuiy,  or  which  may  be 
received  therein  from  other  sources  during  the  present  3*ear, 
to  defray  any  of  the  public  expenses  which  are,  or  ma}'  be 
authorized  by  law.  The  stock  thereby  created,  shall  be 


1810.]  .          PLEDGE    OF   FUNDS.  61 

transferable  in  the  same  manner  as  is  provided  by  law  for 
the  transfer  of  the  funded  debt.  It  shall  be  lawful  for  the 
Bank  of  the  United  States  to  lend  the  said  sum,  or  any  part 
thereof;  and  it  is  further  hereby  declared,  that  it  shall  be 
deemed  a  good  execution  of  the  said  power  to  borrow,  for 
the  Secretary  of  the  Treasury,  with  the  approbation  of  the 
President  of  the  United  States,  to  cause  to  be  constituted 
certificates  of  stock,  signed  by  the  register  of  the  treasury, 
or  by  a  commissioner  of  loans,  for  the  sum  to  be  borrowed, 
or  for  any  part  thereof,  bearing  an  interest  of  six  per  cent, 
per  annum,  transferable  and  reimbursable  as  aforesaid ;  and 
to  cause  the  said  certificates  of  stock  to  be  sold :  Provided, 
that  no  such  stock  be  sold  under  par. 

[By  section  2  the  Secretary  of  the  Treasury  is  authorized,  with  the 
approbation  of  the  President,  to  give  the  preference,  among  subscribers 
to  the  loan  here  provided  for,  to  the  holders  of  exchanged  six  per  cent 
stock  issued  under  the  act  of  February  11,  1807,  to  an  amount  not  ex- 
ceeding for  any  stockholder  the  amount  of  such  exchanged  stock  held 
by  him  :  provided,  that  the  sum  thus  borrowed  from  holders  of  the 
exchanged  stock  shall  be  reimbursable  at  the  pleasure  of  the  United 
States.] 

SEC.  3.  And  be  it  further  enacted,  That  so  much  of  the 
funds  constituting  the  annual  appropriation  of  eight  millions 
of  dollars  for  the  pa3*ment  of  the  principal  and  interest  of 
the  public  debt  of  the  United  States,  as  may  be  wanted  for 
that  purpose,  is  hereby  pledged  and  appropriated  for  the 
paj'ment  of  the  interest  and  for  the  reimbursement  of  the 
principal  of  the  stock,  which  may  be  created  by  virtue  of 
this  act.  It  shall  accordingly  be  the  duty  of  the  commis- 
sioners of  the  sinking  fund,  to  cause  to  be  applied  and  paid 
out  of  the  said  fund  yearly,  and  every  3~ear,  such  sum  and 
sums  as  ma}-  be  annually  wanted  to  discharge  the  interest 
accruing  on  the  said  stock,  and  to  reimburse  the  principal, 
as  the  same  shall  become  due,  and  may  be  discharged  in 
conformity  with  the  terms  of  the  loan  ;  and  they  are  further 
authorized  to  apply,  from  time  to  time,  such  sum  or  sums 
out  of  the  said  fund  as  they  may  think  proper,  towards  re- 
deeming by  purchase,  and  at  a  price  not  above  par,  the  prin- 


62  LOAX   OF   ELEVEN   MILLIONS.  [1812. 

cipal  of  the  said  stock  or  an}'  part  thereof.  And  the  faith 
of  the  United  States  is  hereby  pledged  to  establish  sufficient 
revenues  for  making  up  any  deficiency  that  may  hereafter 
take  place  in  the  funds  hereby  appropriated  for  paying  the 
said  interest  and  principal  sums,  or  any  of  them,  in  manner 

aforesaid. 

[Approved,  May  1,  1810.    2  Statutes  at  Large,  610.] 

1810-11,  Chap.  XXXII.  —  An  Act  authorizing  a  loan 
of  money,  for  a  sum  not  exceeding  Jive  millions  of 
dollars. 

[Section  1  empowers  the  President  to  borrow  on  the  credit  of  the 
United  States  a  sum  not  exceeding  five  millions  of  dollars  at  a  rate  of 
interest,  payable  quarter-yearly,  not  exceeding  six  per  cent.,  and  to  be 
reimbursed  at  pleasure  or  at  periods  not  exceeding  six  years  from  Jan- 
uary 1,  1812.  This  loan  is  to  be  applied  to  defray  any  authorized  pub- 
lic expense,  the  stock  to  be  transferable  like  the  funded  debt,  and  not  to 
be  sold  under  par. 

Section  2  is  identical  with  section  3  of  the  Act  of  May  1,  1810, 

above.] 

[Approved,  March  2,  1811.    2  Statutes  at  Large,  656.] 

1811-12,  Chap.  XLI. — An  Act  authorizing  a  loan  for  a 
sum  not  exceeding  eleven  millions  of  dollars. 

[By  sections  1  and  2  the  President  is  authorized  to  borrow  on  the 
credit  of  the  United  States,  in  order  to  defray  expenses  authorized  by 
law  during  the  present  session  of  Congress,  a  sum  not  exceeding  eleven 
millions  of  dollars,  at  an  interest  not  exceeding  six  per  cent,  per  annum, 
payable  quarter-yearly.  No  contract  is  to  be  made  precluding  reim- 
bursement at  any  time  after  the  expiration  of  twelve  years  from  Janu- 
ary 1,  1813,  and  none  of  the  stock  is  to  be  sold  under  par.] 

SEC.  3.  And  be  it  further  enacted,  That  so  much  of  the 
funds  constituting  the  annual  appropriation  of  eight  millions 
of  dollars,  for  the  payment  of  the  principal  and  interest  of 
the  public  debt  of  the  United  States,  as  ma}-  be  wanted  for 
that  purpose,  after  satisfying  the  sums  necessary  for  the 
payment  of  the  interest  and  such  part  of  the  principal  of 
the  said  debt  as  the  United  States  are  now  pledged  annually 
to  pa}-  or  reimburse,  is  hereby  pledged  and  appropriated  for 
the  payment  of  the  interest,  and  for  the  reimbursement  of 


1812.]  NOTES   OF   THE    UNITED    STATES    BANK.  63 

the  principal  of  the  stock  which  may  be  created  by  virtue 
of  this  act ;  it  shall  accordingly  be  the  duty  of  the  commis- 
sioners of  the  sinking  fund,  to  cause  to  be  applied  and  paid 
out  of  the  said  fund  yearly,  such  sum  and  sums  as  may  be 
annually  wanted  to  discharge  the  interest  accruing  on  the 
said  stock,  and  to  reimburse  the  principal  as  the  same  shall 
become  due,  and  may  be  discharged  in  conformity  with  the 
terms  of  the  loan ;  and  they  are  further  authorized  to  apply, 
from  time  to  time,  such  sum  or  sums  out  of  the  said  fund  as 
they  may  think  proper,  towards  redeeming  by  purchase,  and 
at  a  price  not  above  par,  the  principal  of  the  said  stock,  or 
any  part  thereof.  And  the  faith  of  the  United  States  is 
hereby  pledged  to  establish  sufficient  revenues  for  making 
up  any  deficiency  that  may  hereafter  take  place  in  the  funds 
hereby  appropriated  for  paying  the  said  interest  and  princi- 
pal sums,  or  any  of  them,  in  manner  aforesaid. 

[Approved,  March  14,  1812.     2  Statutes  at  Large,  694.] 

NOTE.  —  By  the  Act  of  July  6,  1812,  authority  is  given  for  the  em- 
ployment of  agents  for  the  purpose  of  selling  any  part  of  the  stock 
authorized  above,  and  a  commission  not  exceeding  one  eighth  of  one  per 
cent  is  allowed.  2  Statutes  at  Large,  784. 

1811-12,  Chap.  XLIII.  —  An  Act  repealing  the  tenth  section 
of  the  act  to  incorporate  the  subscribers  to  the  Sank  of 
the  United  States. 

Be  it  enacted,  .  .  .  That  the  tenth  section  of  the  act  en- 
tituled  "An  act  to  incorporate  the  subscribers  to  the  Bank 
of  the  United  States,"  shall  be,  and  the  same  is  hereby 

repealed. 

[Approved,  March  19,  1812.     2  Statutes  at  Large,  695.] 

1811-12,  Chap.  CXI.  —  An  Act  to  authorize  the  issuing  of 
Treasury  Notes. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United 
States  be,  and  he  is  hereby  authorized  to  cause  treasury 
notes  for  such  sum  or  sums  as  he  may  think  expedient,  but 
not  exceeding;  in  the  whole  the  sum  of  five  millions  of  dol- 


64  TREASURY  NOTES ;  [1812. 

lars,  to  be  prepared,  signed  and  issued  in  the  manner  herein 
after  provided. 

SEC.  2.  And  be  it  further  enacted,  That  the  said  treasury 
notes  shall  be  reimbursed  by  the  United  States,  at  such 
places,  respectively,  as  may  be  expressed  on  the  face  of  the 
said  notes,  one  j'ear,  respectively,  after  the  day  on  which 
the  same  shall  have  been  issued :  from  which  day  of  issue 
the}'  shall  bear  interest,  at  the  rate  of  five  and  two  fifths  per 
centum  a  }'ear,  payable  to  the  owner  and  owners  of  such  notes, 
at  the  treasury,  or  by  the  proper  commissioner  of  loans,  at 
the  places  and  times  respectively  designated  on  the  face  of 
said  notes  for  the  payment  of  principal. 

[Section  3  provides  for  the  signing  and  countersigning  of  the  notes, 
and  for  the  compensation  of  the  persons  employed  for  this  purpose.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretar}*  of 
the  Treasury  be,  and  he  is  hereby  authorized,  with  the  ap- 
probation of  the  President  of  the  United  States,  to  cause  to 
be  issued  such  portion  of  the  said  treasuiy  notes  as  the  Presi- 
dent may  think  expedient  in  payment  of  supplies,  or  debts 
due  by  the  United  States,  to  such  public  creditors,  or  other 
persons,  as  may  choose  to  receive  such  notes  in  payment, 
as  aforesaid,  at  par :  and  the  Secretary  of  the  Treasuiy  is 
further  authorized,  with  the  approbation  of  the  President  of 
the  United  States,  to  borrow,  from  time  to  time,  not  under 
par,  such  sums  as  the  President  may  think  expedient,  on  the 
credit  of  such  notes.  And  it  shall  be  a  good  execution  of 
this  provision  to  pa}'  such  notes  to  such  bank  or  banks  as 
will  receive  the  same  at  par  and  give  credit  to  the  treasurer 
of  the  United  States  for  the  amount  thereof,  on  the  day  on 
which  the  said  notes  shall  thus  be  issued  and  paid  to  such 
bank  or  banks  respectively. 

SEC.  5.  And  be  it  further  enacted,  That  the  said  treasuiy 
notes  shall  be  transferable  by  delivery  and  assignment  en- 
dorsed thereon  by  the  person  to  whose  order  the  same  shall, 
on  the  face  thereof,  have  been  made  payable. 

SEC.  6.  And  be  it  further  enacted,  That  the  said  treasury 
notes,  wherever  made  payable,  shall  be  everywhere  received 


1812.]  TO   BE    PAID    BY   THE    SINKING   FUND.  65 

in  payment  of  all  duties  and  taxes  laid  by  the  authority  of 
the  United  States,  and  of  all  public  lands  sold  by  the  said 
authority.  On  every  such  payment,  credit  shall  be  given  for 
the  amount  of  both  the  principal  and  the  interest  which,  on 
the  day  of  such  payment,  may  appear  due  on  the  note  or 
notes  thus  given  in  payment.  And  the  said  interest  shall,  on 
such  payments,  be  computed  at  the  rate  of  one  cent  and  one 
half  of  a  cent  per  day  on  every  hundred  dollars  of  princi- 
pal, and  each  month  shall  be  computed  as  containing  thirty 
da}'s. 

[Section  7  provides  that  any  public  officer  who  may  receive  such 
treasury  notes  shall,  on  payment  of  the  same  into  the  treasury  or  into 
any  bank  where  public  monies  are  deposited,  be  credited  with  the  prin- 
cipal of  the  notes  so  paid  in,  and  the  interest  which  may  then  have 
accrued,  and  shall  be  charged  with  the  interest  accruing  on  the  notes 
while  in  his  hands.  But  no  such  charge  for  accruing  interest  shall  be 
made  against  any  bank  receiving  payment  for  the  United  States  from 
individuals  or  public  officers,  which  shall  receive  such  notes  as  specie 
and  shall  credit  the  treasurer  of  the  United  States  with  the  amount 
thereof,  including  the  interest  due  on  the  day  of  receipt.] 

SEC.  8.  And  be  it  further  enacted,  That  the  commission- 
ers of  the  sinking  fund  be,  and  they  are  hereby  authorized 
and  directed  to  cause  to  be  reimbursed  and  paid  the  princi- 
pal and  interest  of  the  treasury  notes  which  may  be  issued 
by  virtue  of  this  act,  at  the  several  time  and  times  when 
the  same,  according  to  the  provisions  of  this  act,  should  be 
thus  reimbursed  and  paid.  And  the  said  commissioners  are 
further  authorized  to  make  purchases  of  the  said  notes,  in 
the  same  manner  as  of  other  evidences  of  the  public  debt, 
and  at  a  price  not  exceeding  par,  for  the  amount  of  the 
principal  and  interest  due  at  the  time  of  purchase  on  such 
notes.  So  much  of  the  funds  constituting  the  annual  appro- 
priation of  eight  millions  of  dollars,  for  the  principal  and 
interest  of  the  public  debt  of  the  United  States,  as  may  be 
wanted  for  that  purpose,  after  satisfying  the  sums  necessary 
for  the  payment  of  the  interest  and  such  part  of  the  princi- 
pal of  the  said  debt  as  the  United  States  are  now  pledged 
annually  to  pay  and  reimburse,  is  hereby  pledged  and  ap- 
propriated for  the  payment  of  the  interest,  and  for  the  reim- 

5 


G6  EXCHANGE    OF    SIX   PER   CENT.    STOCKS.  [1812. 

bursement  or  purchase  of  the  principal  of  the  said  notes. 
And  so  much  of  any  monies  in  the  treasury  not  otherwise 
appropriated  as  may  be  necessary  for  that  purpose,  is  hereby 
appropriated  for  making  up  any  deficiency  in  the  funds 
thus  pledged  and  appropriated  for  paying  the  principal  and 
interest  as  aforesaid. 

[Sections  9  and  10  provide  for  the  expense  of  preparing  the  notes  for 
issue,  and  fix  the  penalties  for  counterfeiting  and  for  uttering  counter- 
feited notes.] 

[Approved,  June  30,  1812.    2  Statutes  at  Large,  766.] 

1811-12,  Chap.  CXXXV.  —  An  Act  authorizing  a  subscrip- 
tion for  the  old  six  per  cent,  and  deferred  stocks,  and 
providing  for  an  exchange  of  the  same. 

[By  section  1  a  subscription  to  the  full  amount  of  the  old  six  per  cent, 
and  deferred  stocks  is  proposed,  to  remain  open  from  October  1,  1812 
to  March  17,  1813,  inclusively,  the  last  fourteen  days  of  each  quarter 
excepted,  in  terms  identical  with  those  of  section  1  of  the  Act  of  Febru- 
ary 11,  1807  on  page  56.] 

SEC.  2.  And  be  it  further  enacted,  That  for  such  part  of 
the  amount  of  old  six  per  cent,  or  deferred  stock,  thus  sub- 
scribed, as  shall  remain  unredeemed  on  the  day  of  such 
subscription,  credits  shall  be  entered  to  the  respective  sub; 
scribers,  on  the  books  of  the  treasury  or  of  the  commission- 
ers of  loans  where  such  subscription  shall  have  been  made, 
and  the  subscriber  or  subscribers  shall  be  entitled  to  receive 
a  certificate  or  certificates  purporting  that  the  United  States 
owe  to  the  holder  or  holders  thereof,  his,  her,  or  their  as- 
signs, a  sum  to  be  expressed  therein,  equal  to  the  unre- 
deemed amount  of  the  principal  of  the  old  six  per  cent,  or 
deferred  stocks,  subscribed  as  aforesaid,  bearing  an  interest 
of  six  per  centum  per  annum,  paj-able  quarter  3'early,  from 
the  first  day  of  the  quarter  during  which  such  subscription 
shall  have  been  made,  transferable  in  the  same  manner  as  is 
provided  by  law  for  the  transfers  of  the  stock  subscribed, 
and  subject  to  redemption  at  the  pleasure  of  the  United 
States  at  any  time  after  the  thirty-first  clay  of  December, 
one  thousand  eight  hundred  and  twenty- four:  Provided, 


1813.]  SIXTEEN   MILLION   LOAN.  67 

That  no  reimbursement  shall  be  made  except  for  the  whole 
amount  of  the  stock  standing  at  the  time,  to  the  credit  of  any 
proprietor,  on  the  books  of  the  treasury  or  of  the  commis- 
sioners of  loans  respectively,  nor  till  after  at  least  six  months' 
previous  public  notice  of  such  intended  reimbursement. 

[Section  3  is  identical  with  section  6  of  the  Act  of  February  11,  1807, 
except  that,  in  the  concluding  sentence,  only  "  such  part  of  the  annual 
sum  of  eight  millions  as  may  be  necessary  and  wanting  for  the  above 
purposes,"  to  wit,  the  payment  of  interest  and  reimbursement  of  princi- 
pal of  the  stock  now  to  be  created,  is  to  continue  appropriated  until  the 
redemption  of  the  stock.] 

SEC.  4.  And  be  it  further  enacted,  That  nothing  in  this 
act  contained  shall  be  construed  in  anywise  to  alter,  abridge 
or  impair  the  rights  of  those  creditors  of  the  United  States 
who  shall  not  subscribe  to  the  loan  to  be  opened  by  virtue  of 

this  act. 

[Approved,  July  6,  1812.    2  Statutes  at  Large,  783.] 

1812-13,  Chap.  XXI.  —  An  Act  authorizing  a  Loan  for  a 
sum.  not  exceeding  sixteen  millions  of  dollars. 

[Section  1  empowers  the  President  to  borrow,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  sixteen  millions  of  dollars,  to  be 
applied  to  defray  expenses  authorized  during  the  present  session  of 
Congress ;  but  no  engagement  is  to  be  entered  into  which  shall  preclude 
the  reimbursement  of  the  loan  at  any  time  after  twelve  years  from  Jan- 
uary 1,  1814.] 

SEC.  2.  And  be  it  further  enacted,  That  the  President  of 
the  United  States  do  cause  to  be  laid  before  Congress,  on 
the  first  Monday  in  February,  eighteen  hundred  and  four- 
teen, or  as  soon  thereafter  as  Congress  may  be  in  session,  an 
account  of  all  the  monies  obtained  b}-  the  sale  of  the  certifi- 
cates of  stock,  by  virtue  of  the  power  given  him  by  the  pre- 
ceding section,  together  with  a  statement  of  the  rate  at 
which  the  same  may  have  been  sold. 

[Section  3  authorizes  the  employment  of  agents,  to  procure  subscrip- 
tions to  the  stock  or  to  sell  the  same,  and  allows  a  commission  not  ex- 
ceeding one  quarter  of  one  per  cent  on  the  amount  disposed  of  by  them. 

Section  4,  pledging  for  the  support  of  this  loan  the  requisite  amount  of 
the  sinking  fund,  and  prescribing  the  duties  of  the  commissioners  of  the 


68  TREASURY   NOTE   ACT.  [1813. 

sinking  fund,  is  identical  with  section  3  of  the  Act  of  March  14,  1812, 
on  page  62.] 

[Approved,  February  8, 1813.    2  Statutes  at  Large,  798.] 


1812-13,  Chap.  XXVII.  —  An  Act  authorizing  the  issuing 
of  Treasury  notes  for  the  service  of  the  year  one  thou- 
sand eight  hundred  and  thirteen. 

J$e  it  enacted,  ...  That  the  President  of  the  United 
States  be,  and  he  is  hereby  authorized  to  cause  treasury 
notes  for  such  sum  or  sums  as  he  may  think  expedient,  but 
not  exceeding  in  the  whole  the  sum  of  five  millions  of  dol- 
lars, to  be  prepared,  signed,  and  issued,  in  the  manner  here- 
inafter provided. 

SEC.  2.  And  be  it  further  enacted,  That  the  President  of 
the  United  States  be,  and  he  is  hereby  authorized,  in  addi- 
tion to  the  amount  authorized  by  the  next  preceding  section 
of  this  act,  to  cause  treasury  notes,  for  such  sum  or  sums  as 
he  may  think  expedient,  but  not  exceeding  in  the  whole  the 
further  sum  of  five  millions  of  dollars,  to  be  prepared,  signed, 
and  issued  in  the  manner  hereinafter  provided :  Provided, 
that  the  amount  of  money  borrowed  or  obtained,  by  virtue 
of  the  notes  which  may  be  issued  by  virtue  of  this  section, 
shall  be  deemed  and  held  to  be  in  part  of  the  sum  of  six- 
teen millions  of  dollars,  authorized  to  be  borrowed  by  virtue 
of  the  act  to  that  effect,  passed  during  the  present  session 
of  Congress. 

SEC.  3.  And  be  it  further  enacted,  That  the  said  treasury 
notes  shall  be  reimbursed  by  the  United  States,  at  such 
places  respectively  as  may  be  expressed  on  the  face  of  the 
said  notes,  one  3'ear  respectively  after  the  day  on  which  the 
same  shall  have  been  issued ;  from  which  day  of  issue  they 
shall  bear  interest,  at  the  rate  of  five  and  two-fifths  per 
centum  a  }*ear,  payable  to  the  owner  and  owners  of  such 
notes,  at  the  treasuiy,  or  by  the  proper  commissioner  of 
loans,  or  by  the  officer  designated  for  that  purpose,  at  the 
places  and  times  respectively  designated  on  the  face  of  said 
notes,  for  the  payment  of  principal. 


1813.]  PLEDGE  OF  FUNDS.  69 

[Sections  4  and  6,  providing  for  the  signing  of  the  notes  and  author- 
izing their  issue  in  any  of  several  methods,  are  nearly  identical  with 
sections  3  and  4  of  the  Treasury  Note  Act  of  June  30,  1812,  on  page  64 ; 
but  to  section  5  of  the  present  act  is  added  a  provision  that  the  Secretary 
may  "  sell,  not  under  par,  such  portion  of  the  said  notes  as  the  President 
may  think  expedient." 

Section  6  authorizes  the  employment  of  agents  for  the  purpose  of 
selling  any  of  the  notes  now  to  be  issued,  and  allows  a  commission  not 
exceeding  one  quarter  of  one  per  cent,  on  the  amount  thus  sold. 

Sections  7,  8,  and  9,  relating  to  the  transfer  of  the  notes,  their  receipt 
for  public  dues,  and  the  manner  of  crediting  public  officers  and  banks 
with  the  interest  accruing  on  them,  are  identical  with  the  sections  5,  6 
and  7  of  the  Act  of  June  30,  1812.] 

SEC.  10.  And  be  it  farther  enacted,  That  the  commission- 
ers of  the  sinking  fund  be,  and  they  are  hereby  authorized 
and  directed  to  cause  to  be  reimbursed  and  paid  the  princi- 
pal and  interest  of  the  treasury  notes  which  may  be  issued 
by  virtue  of  this  act,  at  the  several  time  and  times  when  the 
same,  according  to  the  provisions  of  this  act,  should  be  thus 
reimbursed  and  paid  ;  and  the  said  commissioners  are  further 
authorized  to  make  purchases  of  the  said  notes,  in  the  same 
manner  as  of  other  evidences  of  the  public  debt,  and  at  a 
price  not  exceeding  par,  for  the  amount  of  the  principal  and 
interest  due  at  the  time  of  purchase  of  such  notes.  So  much 
of  the  funds  constituting  the  annual  appropriation  of  eight 
millions  of  dollars,  for  the  payment  of  the  principal  and 
interest  of  the  public  debt  of  the  United  States,  as  may  be 
wanted  for  that  purpose,  after  satisfying  the  sums  necessary 
for  the  payment  of  the  interest  and  such  part  of  the  princi- 
pal of  the  said  debt,  as  the  United  States  are  now  pledged 
annually  to  pay  and  reimburse,  including  therein  the  interest 
and  principal  which  may  become  pa}-able  upon  any  loan  or 
loans  which  may  be  contracted  by  virtue  of  any  law  passed 
during  the  present  session  of  Congress,  is  hereby  pledged 
and  appropriated  for  the  payment  of  the  interest,  and  for  the 
reimbursement  or  purchase  of  the  principal  of  the  said  notes  ; 
and  so  much  of  any  monies  in  the  treasury  not  otherwise  ap- 
propriated, as  may  be  necessary  for  that  purpose,  is  hereby 
appropriated  for  making  up  any  deficiency  in  the  funds  thus 


70  SEVEN  AND  A  HALF  MILLION  LOAN.       [1813. 

pledged  and  appropriated,  for  paying  the  principal  and  inter- 
est as  aforesaid  ;  and  the  Secretary  of  the  Treasury  is  hereby 
authorized  and  directed  for  that  purpose  to  cause  to  be  paid 
to  the  commissioners  of  the  sinking  fund  such  sum  or  sums 
of  money,  and  at  such  time  and  times  as  will  enable  the  said 
commissioners  faithfully  and  punctually  to  pay  the  principal 
and  interest  of  the  said  notes. 

[Sections  11  and  12,  providing  for  the  expense  of  preparing  the  notes 
for  issue,  and  fixing  the  penalties  for  counterfeiting,  and  for  uttering 
counterfeited  notes,  follow  closely  the  corresponding  sections  of  the  Act 
of  June  30,  1812.] 

[Approved,  February  25,  1813.    2  Statutes  at  Large,  801.] 

1813,  Chap.  LI.  —  An  Act  authorizing  a  loan  for  a  sum 
not  exceeding  seven  millions  Jive  hundred  thousand 
dollars. 

[Section  1  empowers  the  President  to  borrow  on  the  credit  of  the 
United  States  a  sum  not  exceeding  seven  million  five  hundred  thousand 
dollars,  to  be  applied  to  defray  expenses  for  the  years  1813  and  1814, 
but  provides  that  no  contract  shall  be  entered  into  precluding  the  reim- 
bursement of  the  sum  thus  borrowed,  at  any  time  after  twelve  years 
from  January  1,  1814. 

Section  2  authorizes  the  sale  of  certificates  of  the  stock  thus  to  be 
created:  "Provided,  that  no  such  certificate  shall  be  sold  at  a  rate  less 
than  eighty-eight  per  centum,  or  eighty-eight  dollars  in  money  for  one 
hundred  dollars  in  stock ; "  and  requires  that  an  account  of  moneys  ob- 
tained by  such  sales  and  a  statement  of  the  rate  obtained  shall  be  laid 
before  Congress  on  the  first  Monday  in  February,  1814,  or  as  soon  there- 
after as  Congress  shall  be  in  session. 

Section  3,  authorizing  the  employment  of  agents  in  disposing  of  the 
stock,  follows  the  terms  of  section  3  of  the  Act  of  February  8,  1813, 
on  page  67. 

Section  4,  pledging  for  the  support  of  this  loan  the  requisite  amount 
of  the  sinking  fund  and  prescribing  the  duties  of  the  commissioners  of 
the  sinking  fund,  is  identical  with  section  3  of  the  Act  of  March  14, 
1812,  on  page  62.] 

[Approved,  August  2,  1813.     3  Statutes  at  Large,  75.] 

1813-14,  Chap.  XVIII.  —  An  Act  to  authorize  the  issuing 
of  treasury  notes  for  the  service  of  the  year  one  thou- 
sand eight  hundred  and  fourteen. 
Be  it  enacted,  .  .  .  That  the  President  of   the   United 

States  be,  and  he  is  hereby  authorized  to  cause  treasury 


1813.]  TREASURY   NOTE    ACT.  71 

notes,  for  a  sum  not  exceeding  five  millions  of  dollars,  to 
be  prepared,  signed,  and  issued,  in  the  manner  hereinafter 
provided. 

,  SEC.  2.  And  be  it  further  enacted,  That  the  President  of 
the  United  States  be,  and  he  is  hereby  authorized  to  cause 
treasury  notes  for  a  further  and  additional  sum  not  exceeding 
in  the  whole  five  millions  of  dollars,  or  such  part  thereof  as 
he  shall  deem  expedient,  to  be  prepared,  signed,  and  issued, 
in  the  manner  hereinafter  provided  :  but  the  amount  of  money 
borrowed  or  obtained  for  the  notes  which  ma}-  be  issued  by 
virtue  of  this  section,  shall  be  deemed  and  held  to  be  in  part 
of  the  sum  which  rnaj-  be  authorized  to  be  borrowed  b}-  virtue 
of  any  act  authorizing  a  loan  which  may  be  passed  during  the 
present  session  of  Congress. 

SEC.  3.  And  be  it  further  enacted,  That  the  said  treasury 
notes  shall  be  reimbursed  bj-  the  United  States  at  such 
places  respectively,  as  may  be  expressed  on  the  face  of 
such  notes,  one  year  respectively  after  the  day  on  which  the 
same  shall  have  been  issued ;  from  which  da}-  of  issue  they 
shall  bear  interest  at  the  rate  of  five  and  two-fifths  per 
centum  a  3*ear,  payable  to  the  owner  or  owners  of  such 
notes,  at  the  treasuiy,  or  by  the  proper  commissioner  of 
loans,  or  b}*  the  officer  designated  for  that  purpose,  at  the 
places  and  times  respectively  designated  on  the  face  of  said 
notes  for  the  payment  of  principal. 

[Sections  4,  5  and  6,  providing  for  the  signing  of  the  notes  and  for 
their  issue  or  sale,  and  for  the  employment  and  compensation  of  agents 
in  their  sale,  follow  the  language  of  the  corresponding  sections  4,  5  and 

6  of  the  Act  of  February  25,  1813,  on  page  09. 

Sections  7,  8  and  9,  relating  to  the  transfer  of  the  notes,  their  receipt 
for  public  dues,  and  the  manner  of  crediting  public  officers  and  banks 
with  interest  accruing  on  them,  are  identical  with  the  sections  5,  6  and 

7  of  the  Act  of  June  30,  1812,  on  page  04. 

Section  10,  containing  the  sinking  fund  provisions,  is  identical  with 
section  10  of  the  Treasury  Note  Act  of  February  25,  1813. 

Sections  11  and  12,  providing  for  the  expense  of  preparing  the  notes 
for  issue  and  fixing  the  penalties  for  counterfeiting  and  for  uttering 
counterfeited  notes,  follow  the  language  of  the  corresponding  sections 
of  the  Act  of  June  30,  1812.] 

[Approved,  March  4,  1815.    3  Statutes  at  Large,  100.] 


72  TWENTY-FIVE   MILLION  LOAN.  [1815. 

1813-14,  Chap.  XXIX.  —  An  Act  to  authorize  a  loan  for  a 
sum  not  exceeding  twenty-Jive  millions  of  dollars. 

[Section  1  empowers  the  President  to  borrow,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  twenty-five  millions  of  dollars,  to  be 
applied  to  defray  any  expenses  authorized  by  law,  during  the  present 
year:  provided,  that  no  contract  shall  be  made  to  preclude  the  reimburse- 
ment of  the  sum  thus  borrowed,  at  any  time  after  twelve  years  from 
December  31,  1814. 

Section  2  authorizes  the  sale  of  the  stock  thus  to  be  created,  but 
fixes  no  limit  as  to  the  rate,  and  requires  the  Secretary  of  the  Treasury 
to  lay  before  Congress  during  the  first  week  of  February,  1815,  an  ac- 
count of  the  moneys  procured  by  sale  of  the  stock  and  a  statement  of 
the  rate  obtained. 

Section  3,  authorizing  the  employment  of  agents  in  disposing  of  the 
stock,  follows  the  terms  of  section  3  of  the  Act  of  February  8,  1813, 
on  page  67. 

Section  4,  containing  the  sinking  fund  provisions,  is  identical  with  sec- 
tion 3  of  the  Act  of  March  14,  1812,  on  page  62.] 

[Approved,  March  24,  1814.    3  Statutes  at  Large,  111.] 

1814-15,  Chap.  IV. — An  Act  to  authorize  a  loan  for  a  sum 
not  exceeding  three  millions  of  dollars. 

[Section  1  authorizes  the  President  to  borrow,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  three  millions  of  dollars,  to  be  ap- 
plied to  defray  any  expenses  authorized  by  law  during  the  present  year : 
provided,  that  no  contract  shall  be  entered  into  precluding  the  reim- 
bursement of  the  sum  thus  borrowed,  at  any  time  after  twelve  years  from 
December  31,  1814. 

Section  2  authorizes  the  Secretary  of  the  Treasury  to  sell  the  stock 
thus  to  be  created,  but  fixes  no  limit  as  to  the  rate  of  sale,  requiring  him 
to  lay  before  Congress  an  account  of  the  moneys  thus  procured  and  the 
rate  obtained. 

Section  3  authorizing  the  employment  of  agents  in  disposing  of  the 
stock  follows  the  terms  of  section  3  of  the  Act  of  February  8,  1813.] 

SEC.  4.  And  be  it  further  enacted,  That  it  shall  be  lawful 
to  receive  in  pa}*ment  of  any  loan  obtained  under  this  act,  or 
under  any  other  act  of  Congress  authorizing  a  loan,  treasury 
notes  which  have  been  issued  according  to  law,  and  which 
shall  become  due  and  payable  on  or  before  the  first  day  of 
January  next,  at  the  par  value  of  such  treasurj^  notes,  to- 
gether with  the  interest  thereon  accrued,  at  the  time  of  the 
paj-ment  on  account  of  the  loan. 


1815.]  THREE   MILLION   LOAN.  73 

SEC.  5.  And  be  it  further  enacted,  That  so  much  of  the 
funds  constituting  the  annual  appropriation  of  eight  millions 
of  dollars,  for  the  payment  of  the  principal  and  interest  of 
the  public  debt  of  the  United  States  as  may  be  wanted  for 
that  purpose,  after  satisfying  the  sums  necessary  for  the 
payment  of  the  interest  and  such  part  of  the  principal  of 
said  debt,  as  the  United  States  are  now  pledged  annually  to 
pay  or  reimburse,  is  hereby  pledged  and  appropriated  for 
the  payment  of  the  interest,  and  for  the  reimbursement  of 
the  principal  of  the  stock  which  may  be  created  by  virtue 
of  this  act.  It  shall  accordingly  be  the  duty  of  the  commis- 
sioners of  the  sinking  fund,  to  cause  to  be  applied  and  paid 
out  of  the  said  fund,  yearly,  such  sum  and  sums  as  may  be 
annually  wanted  to  discharge  the  interest  accruing  on  the 
said  stock,  and  to  reimburse  the  principal,  as  the  same  shall 
become  due,  and  may  be  discharged  in  conformity  with  the 
terms  of  the  loan ;  and  they  are  further  authorized  to  apply, 
from  time  to  time,  such  sum  or  sums  out  of  the  said  fund, 
as  the}7  may  think  proper,  towards  redeeming,  by  purchase, 
and  at  a  price  not  above  par,  the  principal  of  the  said  stock, 
or  any  part  thereof. 

SEC.  6.  And  be  it  farther  enacted,  That  in  addition  to 
the  annual  sum  of  eight  millions  of  dollars,  heretofore  ap- 
propriated to  the  sinking  fund,  adequate  and  permanent 
funds  shall  during  the  present  session  of  Congress,  be  pro- 
vided and  appropriated,  for  the  payment  of  the  interest 
and  reimbursement  of  the  principal  of  said  stock  created  by 
this  act. 

SEC.  7.  And  be  it  further  enacted,  That  an  adequate  and 
permanent  sinking  fund,  gradually  to  reduce  and  eventually 
to  extinguish  the  public  debt,  contracted  and  to  be  con- 
tracted during  the  present  war,  shall  also  be  established 
during  the  present  session  of  Congress. 

[Approved,  November  15,  1814.    3  Statutes  at  Large,  144.] 


74          PLEDGE  OF  REVENUE  FOE  THE  DEBT.      [1815. 

1814-15,  Chap.  XH.  —  An  Act  to  provide  additional  reve- 
nues for  defraying  the  expenses  of  government,  and 
maintaining  the  public  credit,  by  duties  on  carriages, 
and  the  harness  used  therefor. 

SEC.  10.  And  be  it  further  enacted,  That  towards  estab- 
lishing an  adequate  revenue  to  provide  for  the  payment  of 
the  expenses  of  government,  for  the  punctual  paj-ment  of  the 
public  debt,  principal  and  interest,  contracted  and  to  be  con- 
tracted, according  to  the  terms  of  the  contracts  respectively, 
and  for  creating  an  adequate  sinking  fund,  gradually  to  re- 
duce and  eventually  to  extinguish  the  public  debt,  contracted 
and  to  be  contracted,  the  internal  duties  laid  and  imposed 
by  this  act,  (and  those  laid  and  imposed  by  the  "  Act  laying 
duties  on  carriages  for  the  conve3'ance  of  persons,"  passed 
tweutN'-fourth  July,  one  thousand  eight  hundred  and  thirteen, 
so  far  as  the  same  are  not  hereby  abolished,)  shall  be  laid, 
levied,  and  collected,  during  the  present  war  between  the 
United  States  and  Great  Britain,  and  until  the  purposes 
aforesaid  shall  be  completely  accomplished,  anj-thing  in  any 
act  of  Congress  to  the  contrary  thereof  in  any  wise  notwith- 
standing. And  for  effectual  application  of  the  revenue  to 
be  raised  by  and  from  the  said  internal  duties  to  the  pur- 
poses aforesaid,  in  due  form  of  law,  the  faith  of  the  United 
States  is  hereby  pledged  ;  Provided  always,  That  whenever 
Congress  shall  deem  it  expedient  to  alter,  reduce,  or  change 
the  said  internal  duties,  or  an}-  or  either  of  them,  it  shall 
be  lawful  so  to  do,  upon  providing  and  substituting  by  law, 
at  the  same  time,  and  for  the  same  purposes,  other  duties 
which  shall  be  equally  productive  with  the  duties  so  altered, 
reduced,  or  changed :  And,  Provided  further,  that  nothing 
in  this  act  contained  shall  be  deemed  or  construed  in  any 
wise  to  rescind  or  impair  an}r  specific  appropriation  of  the 
said  duties,  or  any  or  either  of  them,  heretofore  made  by 
law,  but  such  appropriation  shall  remain  and  be  carried  into 
effect  according  to  the  true  intent  and  meaning  of  the  laws 
making  the  same,  anything  in  this  act  to  the  contrary  thereof 
in  any  wise  notwithstanding. 

[Approved,  December  15,  1814.    3  Statutes  at  Large,  148.] 


1815.]  LOAN   TO    ANTICIPATE   DUTIES-  75 

NOTE.  —  This  provision,  without  substantial  change,  is  embodied  in 
section  23  of  the  Act  of  December  21,  1814,  laying  duties  on  distilled 
spirits  and  on  licenses  to  distillers ;  in  section  6  of  the  Act  of  December 
23,  1814,  laying  duties  on  sales  by  auction  and  on  licenses  to  retailers  of 
wines  and  liquors  and  increasing  rates  of  postage ;  in  section  41  of  the 
Act  of  January  9,  1815,  levying  an  annual  direct  tax ;  and  in  all  these 
cases  was  made  applicable  to  previous  acts  on  the  same  subject  matter. 
It  is  also  embodied  in  section  23  of  the  Act  of  January  18,  1815,  laying 
excise  duties  on  manufactures  ;  and  in  section  25  of  the  Act  of  the  same 
day  laying  duties  on  household  furniture  and  watches.  See  3  Statutes 
at  Large,  158,  161,  179,  186,  191. 

1814-15,  Chap.  XV.  —  An  Act  to  provide  additional  revenues 
for  defraying  the  expenses  of  government  and  main- 
taining the  public  credit,  by  laying  duties  on  spirits 
distilled  within  the  United  States,  and  territories  thereof  \ 
and  by  amending  the  acts  laying  duties  on  licenses  to 
distillers  of  spirituous  liquors. 

[Section  25  authorizes  the  anticipation  of  the  duties  laid  by  this  act, 
by  a  loan  upon  the  pledge  of  the  said  duties  for  its  reimbursement,  for 
an  amount  not  exceeding  six  millions  of  dollars  and  at  a  rate  not  above 
six  per  cent.,  the  money  so  obtained  to  be  applied  only  to  the  purposes 
to  which  the  duties  pledged  are  applicable  by  law.  The  same  provision 
is  embodied  in  the  act  of  January  9,  1815,  laying  a  direct  tax.  See 
3  Statutes  at  Large,  179.] 

[Approved,  December  21,  1814.    3  Statutes  at  Large,  158.] 

1814-15,  Chap.  XVII.  —  An  Act  supplementary  to  the  acts 
authorizing  a  loan  for  the  several  sums  of  twenty-five 
millions  of  dollars  and  three  millions  of  dollars. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  be 
and  he  is  hereby  authorized,  with  the  approbation  of  the 
President  of  the  United  States,  to  cause  treasury  notes  to 
be  prepared,  signed  and  issued,  for  and  in  lieu  of  so  much 
of  the  sum  authorized  to  be  borrowed  on  the  credit  of  the 
United  States,  by  the  act  of  Congress,  entitled  "  An  Act  to 
authorize  a  loan  for  a  sum  not  exceeding  twentj'-five  millions 
of  dollars,"  passed  on  the  twenty-fourth  day  of  March,  in  the 
year  one  thousand  eight  hundred  and  fourteen,  and  also  for, 
and  in  lieu  of  so  much  of  the  sum  authorized  to  be  borrowed 


76  TREASURY  NOTE   ACTS.  [1815. 

on  the  credit  of  the  United  States  by  the  act  of  Congress, 
entitled  "An  act  authorizing  a  loan  for  [a]  sum  of  three 
millions  of  dollars,"  passed  on  the  fifteenth  day  of  Novem- 
ber, in  the  year  one  thousand  eight  hundred  and  fourteen,  as 
has  not  been  borrowed  or  otherwise  employed  in  the  issue 
of  treasur3"  notes  according  to  law :  Provided  always,  That 
the  whole  amount  of  treasury  notes  issued  by  virtue  of  this 
act,  for  and  in  lieu  of  the  residue  of  the  said  two  sums  as 
aforesaid,  shall  not  exceed  the  sum  of  seven  millions  five 
hundred  thousand  dollars :  and  further,  that  the  treasury 
notes  so  issued  shall  be  applied  to  the  same  uses  to  which 
the  said  two  loans  authorized  as  aforesaid  were  respectively 
by  law  made  applicable. 

[Section  3  provides  that  the  treasury  notes  issued  under  this  act  shall 
be  prepared  and  issued  in  the  same  form,  and  reimbursable,  transferable 
and  receivable  in  the  same  manner,  as  the  notes  issued  under  the  Act  of 
March  4,  1814 ;  and  that  the  Secretary  of  the  Treasury  shall  have  the 
same  powers  to  sell  or  pay  out  the  notes,  or  to  borrow  money  on  the 
pledge  thereof,  and  to  employ  agents  for  the  purpose  of  making  sales  of 
the  same.] 

SEC.  4.  And  be  it  further  enacted,  That  a  sum  equal  to 
the  whole  amount  of  the  treasuiy  notes  issued  by  virtue  of 
this  act,  to  be  paid  out  of  any  money  in  the  treasury  not 
otherwise  appropriated,  shall  be  and  the  same  is  hereby 
appropriated  for  the  payment  and  reimbursement  of  the 
principal  and  interest  of  such  treasury  notes,  according  to 
contract,  and  the  faith  of  the  United  States  is  hereby 
pledged  to  provide  adequate  funds  for  any  deficiency  in 
the  appropriation  hereby  made. 

[Section  5  and  6  provide,  as  in  previous  acts,  for  the  expense  of  pre- 
paring the  notes  and  for  the  punishment  of  counterfeiting  or  uttering 
counterfeited  notes.] 

[Approved,  December  26,  1814.     3  Statutes  at  Large,  161.] 

1814-1815,  Chap.  LVI.  —  An  Act  to  authorize  the  issuing 
of  treasury  notes  for  the  service  of  the  year  one  thou- 
sand eight  hundred  and  fifteen. 
J2e  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury, 

with  the  approbation  of  the  President  of  the  United  States, 


1815.]  FUNDING   OF   TREASURY   NOTES.  77 

be,  and  he  is  hereby  authorized  to  cause  treasury  notes  for  a 
sum  not  exceeding  twenty-five  millions  of  dollars,  to  be  pre- 
pared, signed,  and  issued,  at  the  treasury  of  the  United 
States,  in  the  manner  hereinafter  provided. 

[Section  2  provides  for  the  signing  and  countersigning  of  the  notes.] 

SEC.  3.  And  be  it  further  enacted,  That  the  said  treasury  . 
notes  shall  be  prepared  of  such  denominations  as  the  Secre- 
tary of  the  Treasury,  with  the  approbation  of  the  President 
of  the  United  States,  shall,  from  time  to  time,  direct ;  and 
such  of  the  said  notes  as  shall  be  of  a  denomination  less 
than  one  hundred  dollars,  shall  be  payable  to  bearer  and  be 
transferable  by  delivery  alone,  and  shall  bear  no  interest ; 
and  such  of  the  said  notes  as  shall  be  of  the  denomination 
of  one  hundred  dollars,  or  upwards,  may  be  made  payable  to 
order,  and  transferable  by  delivery  and  assignment,  endorsed 
on  the  same,  and  bearing  an  interest  from  the  day  on  which 
they  shall  be  issued,  at  the  rate  of  five  and  two-fifths  per 
centum  per  annum  ;  or  they  may  be  made  payable  to  bearer, 
and  transferable  by  delivery  alone,  and  bearing  no  interest, 
as  the  Secretary  of  the  Treasuiy,  with  the  approbation  of  the 
President  of  the  United  States,  shall  direct. 

SEC.  4.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  the  holders  of  the  aforesaid  treasury  notes,  not  bearing 
an  interest,  and  of  the  treasury  notes  bearing  an  interest 
at  the  rate  of  five  and  two-fifths  per  centum  per  annum,  to 
present  them  at  any  time,  in  sums  not  less  than  one  hundred 
dollars,  to  the  treasury  of  the  United  States,  or  to  any  com- 
missioner of  loans ;  and  the  holders  of  the  said  treasury 
notes  not  bearing  an  interest,  shall  be  entitled  to  receive 
therefor,  the  amount  of  the  said  notes,  in  a  certificate  or 
certificates  of  funded  stock,  bearing  interest  at  seven  per 
centum  per  annum,  and  the  holders  of  the  aforesaid  treasury 
notes  bearing  an  interest  at  the  rate  of  five  and  two-fifths 
per  centum,  shall  be  entitled  to  receive  therefor  the  amount 
of  the  said  notes  including  the  interest  due  on  the  same,  in 
a  like  certificate  or  certificates  of  funded  stock,  bearing  an 
interest  of  six  per  centum  per  annum,  from  the  first  day 


78  REISSUE    OF  NOTES.  [1815. 

of  the  calendar  month  next  ensuing  that  in  which  the  said 
notes  shall  thus  be  respectively  presented,  and  payable  quar- 
ter-yearly, on  the  same  days  whereon  the  interest  of  the 
funded  debt  is  now  payable.  And  the  stock  thus  to  be  is- 
sued shall  be  transferable  in  the  same  manner  as  the  other 
funded  stock  of  [the]  United  States ;  the  interest  on  the 
same,  and  its  eventual  reimbursement,  shall  be  effected  out 
of  such  fund  as  has  been  or  shall  be  established  by  law  for 
the  payment  and  reimbursement  of  the  funded  public  debt 
contracted  since  the  declaration  of  war  against  Great  Britain. 
And  the  faith  of  the  United  States  is  hereby  pledged  to  es- 
tablish sufficient  revenues  and  to  appropriate  them  as  an 
addition  to  the  said  fund,  if  the  same  shall,  at  any  time  here- 
after, become  inadequate  for  effecting  the  purpose  aforesaid : 
Provided  however,  And  be  it  farther  enacted,  That  it  shall 
be  lawful  for  the  United  States  to  reimburse  the  stock  thus 
created,  at  any  time  after  the  last  day  of  December,  one 
thousand  eight  hundred  and  twenty-four. 

SEC.  5.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  the  Secretary  of  the  Treasury  to  cause  the  treasury  notes 
which,  in  pursuance  of  the  preceding  section,  shall  be  deliv- 
ered up  and  exchanged  for  funded  stock,  and  also  the  trea- 
sury notes  which  shall  have  been  paid  to  the  United  States 
for  taxes,  duties,  or  demands,  in  the  manner  hereinafter  pro- 
vided, to  be  reissued,  and  applied  anew,  to  the  same  purposes, 
and  in  the  same  manner,  as  when  originally  issued. 

SEC.  6.  And  be  it  further  enacted,  That  the  treasury  notes 
authorized  to  be  issued  by  this  act,  shall  be  everywhere  re- 
ceived in  all  payments  to  the  United  States.  .On  every  such 
paj'inent  the  note  or  notes  shall  be  received  for  the  amount 
of  both  the  principal  and  the  interest,  which,  on  the  day  of 
such  payment,  ma}'  appear  due  on  such  of  the  notes  as  shall 
bear  interest,  thus  given  in  payment ;  and  the  interest  on 
the  said  notes  bearing  an  interest,  shall,  on  such  pa}rments, 
be  computed  at  the  rate  of  one  cent  and  one  half  of  a  cent 
per  da}*,  on  every  hundred  dollars  of  principal ;  and  each 
month  shall  be  computed  as  containing  thirty  days. 


1815.]  EIGHTEEN   MILLION   LOAN   ACT.  79 

[Section  7  provides  for  crediting  collectors  and  other  receivers  of 
public  moneys  with  the  principal  of  the  notes  received  by  them  in  pay- 
ment, and  makes  the  same  provisions  for  crediting  and  charging  inter 
est,  in  case  the  notes  so  received  bear  interest,  as  are  made  in  the 
Treasury  Note  Act  of  June  30,  1812,  on  page  65,  and  in  subsequent 
acts.] 

SEC.  8.  And  be  U  further  enacted,  That  the  Secretary 
of  the  Treasury  be,  and  he  is  hereby  authorized,  with  the 
approbation  of  the  President  of  the  United  States,  to  cause 
the  said  treasury  notes  to  be  issued  at  the  par  value  thereof, 
in  payment  of  services,  of  supplies,  or  of  debts,  for  which 
the  United  States  are  or  may  be  answerable  by  law,  to  such 
person  and  persons  as  shall  be  willing  to  accept  the  same  in 
pa3'ment ;  and  to  deposit  portions  of  the  said  notes  in  the 
loan  offices,  or  in  state  banks,  for  the  purpose  of  paying  the 
same  to  the  public  creditors  as  aforesaid ;  and  to  borrow 
money  on  the  credit  of  the  said  notes ;  or  to  sell  the  same, 
at  a  rate  not  under  par ;  and  it  .shall  be  a  good  execution  of 
this  provision,  to  pay  such  notes  to  such  bank  or  banks  as 
will  receive  the  same  at  par,  and  give  credit  to  the  Treasurer 
of  the  United  States  for  the  amount  thereof,  on  the  day  on 
which  the  said  notes  shall  thus  be  issued  and  paid  to  such 
bank  or  banks  respectively. 

SEC.  9.  And  be  it  further  enacted,  That  it  shall  and  may 
be  lawful  for  the  holder  of  any  treasury  notes  issued,  or 
authorized  to  be  issued,  under  an}r  laws  heretofore  passed, 
to  convert  the  same  into  certificates  of  funded  debt,  upon 
the  same  terms,  and  in  the  same  manner  hereinbefore  pro- 
vided, in  relation  to  the  treasury  notes  authorized  by  this 
act,  bearing  an  interest  of  five  and  two-fifths  per  centum. 

[Sections  10  and  11  provide,  as  in  previous  acts,  for  the  expense  of 
preparing  the  notes  and  for  the  punishment  of  counterfeiting  or  uttering 
counterfeited  notes.] 

[Approved,  February  24,  1815.    3  Statutes  at  Large,  213.] 

1814-15,  Chap.  LXXXVII. —  An  Act  to  authorize  a  loan 
for  a  sum  not  exceeding  eighteen  millions  four  hundred 
and  fifty-two  thousand  eight  hundred  dollars. 
[Section  1  authorizes  the  President  to  borrow,  on  the  credit  of  the 

United  States,  a  sum  not  exceeding  eighteen  million  four  hundred  and 


80  SECOND    BANK   OF   THE   UNITED    STATES.  [1816. 

fifty-two  thousand  eight  hundred  dollars,  to  be  applied  to  defray  any 
expenses  authorized  by  law  during  the  present  year :  provided,  that  no 
contract  shall  be  made  precluding  the  United  States  from  reimbursing 
the  sum  thus  borrowed  at  any  time  after  twelve  years  from  December 
81,  1815. 

Section  2  authorizes  the  Secretary  of  the  Treasury  to  sell  the  stock 
thus  to  be  created,  but  without  fixing  any  limit  of  rate,  and  requires  an 
account  of  the  moneys  thus  procured  and  of  the  rate  obtained  for  the 
stock,  to  be  laid  before  Congress  during  the  first  week  of  February, 
1816. 

Section  3,  authorizing  the  employment  of  agents  in  disposing  of  the 
stock,  follows  the  terms  of  section  3  of  the  Act  of  February  8,  1813,  on 
page  67. 

Section  4,  containing  the  sinking  fund  provisions,  is  identical  with 
section  3  of  the  Act  of  March  14,  1812,  on  page  62.] 

SEC.  6.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  the  Secretary  of  the  Treasury  to  accept  in  payment  of 
any  loan  obtained  in  -virtue  of  this  act,  such  treasury  notes 
as  have  been  actually  issued,  before  the  passing  of  this  act, 
and  which  were  made  by  law  a  charge  upon  the  sinking 
fund,  such  treasury  notes  to  be  credited  for  the  principal 
thereof,  and  the  amount  of  interest  actually  accrued  at  the 
time  of  the  payment. 

SEC.  7.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  the  Secretary  of  the  Treasury  to  cause  to  be  paid,  the 
interest  upon  treasury  notes  which  have  become  due,  and 
remain  unpaid,  as  well  with  respect  to  the  time  elapsed  be- 
fore they  become  due,  as  with  respect  to  the  time  that  shall 
elapse  after  they  become  due,  and  until  funds  shall  be  as- 
signed for  the  paj-ment  of  the  said  treasury  notes,  and  notice 
thereof  shall  be  given  by  the  Secretary  of  the  Treasury. 

[Approved,  March  3, 1815.    3  Statutes  at  Large,  227.] 

1815-16,  Chap.  XLIV.  —  An  Act  to  incorporate  the  sub- 
scribers to  the  JBank  of  the  United  /States. 

J3e  it  enacted,  .  .  .  That  a  bank  of  the  United  States  of 
America  shall  be  established,  with  a  capital  of  thirty-five 
millions  of  dollars,  divided  into  three  hundred  and  fifty 
thousand  shares,  of  one  hundred  dollars  each  share. 


1816.]  BANK   ACT  :    PAYMENT   OF   SUBSCRIPTIONS.  81 

Seventy  thousand  shares,  amounting  to  the  sum  of  seven 
millions  of  dollars,  part  of  the  capital  of  the  said  bank,  shall 
be  subscribed  and  paid  for  by  the  United  States,  in  the  man- 
ner hereinafter  specified  ;  and  two  hundred  and  eighty  thou- 
sand shares,  amounting  to  the  sum  of  twenty-eight  millions 
of  dollars,  shall  be  subscribed  and  paid  for  by  individu- 
als, companies,  or  corporations,  in  the  manner  hereinafter 
specified. 

SEC.  2.  And  be  it  further  enacted,  That  subscriptions  for 
the  sum  of  twenty-eight  millions  of  dollars,  towards  consti- 
tuting the  capital  of  the  said  bank,  shall  be  opened  on  the 
first  Monday  in  July  next.  .  .  . 

[The  places  at  which  subscriptions  are  to  be  received  are  then 
named,  provision  is  made  for  the  appointment  of  commissioners  to. 
receive  them  and  for  the  time  and  manner  of  receiving,  and  directions 
are  given  as  to  the  course  of  proceeding  in  case  the  amount  subscribed 
exceeds  or  falls  short  of  the  twenty-eight  millions  to  be  raised.] 

SEC.  3.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  any  individual,  company,  corporation,  or  state,  when  the 
subscriptions  shall  be  opened  as  herein  before  directed,  to 
subscribe  for  any  number  of  shares  of  the  capital  of  the  said 
bank,  not  exceeding  three  thousand  shares,  and  the  sums  so 
subscribed  shall  be  payable,  and  paid,  in  the  manner  follow- 
ing ;  that  is  to  sa}',  seven  millions  of  dollars  thereof  in  gold 
or  silver  coin  of  the  United  States,  or  in  gold  coin  of  Spain, 
or  the  dominions  of  Spain,  at  the  rate  of  one  hundred  cents 
for  every  twenty-eight  grains  and  sixty-hundredths  of  a  grain 
of  the  actual  weight  thereof,  or  in  other  foreign  gold  or  silver 
coin  at  the  several  rates  prescribed  by  the  first  section  of  an 
act  regulating  the  currency  of  foreign  coins  in  the  United 
States,  passed  tenth  day  of  April,  one  thousand  eight  hundred 
and  six,  and  twenty-one  millions  of  dollars  thereof  in  like  gold 
or  silver  coin,  or  in  the  funded  debt  of  the  United  States 
contracted  at  the  time  of  the  subscriptions  respectively.  And 
the  payments  made  in  the  funded  debt  of  the  United  States, 
shall  be  paid  and  received  at  the  following  rates :  that  is  to 
sa}7,  the  funded  debt  bearing  an  interest  of  six  per  centum 
per  annum,  at  the  nominal  or  par  value  thereof;  the  funded 

6 


82  BANK   ACT:    PAYMENT   OF    SUBSCRIPTIONS.  [1816. 

debt  bearing  an  interest  of  three  per  centum  per  annum,  at 
the  rate  of  sixty-five  dollars  for  every  sum  of  one  hundred 
dollars  of  the  nominal  amount  thereof;  and  the  funded  debt 
bearing  an  interest  of  seven  per  centum  per  annum,  at  the 
rate  of  one  hundred  and  six  dollars  and  fifty-one  cents,  for 
every  sum  of  one  hundred  dollars  of  the  nominal  amount 
thereof;  together  with  the  amount  of  the  interest  accrued  on 
the  said  several  denominations  of  funded  debt,  to  be  com- 
puted and  allowed  to  the  time  of  subscribing  the  same  to  the 
capital  of  the  said  bank  as  aforesaid.  And  the  payments  of 
the  said  subscriptions  shall  be  made  and  completed  by  the 
subscribers,  respectively,  at  the  times  and  in  the  manner  fol- 
lowing; that  is  to  say,  at  the  time  of  subscribing  there  shall 
be  paid  five  dollars  on  each  share,  in  gold  or  silver  coin  as 
aforesaid,  and  twenty-five  dollars  more  in  coin  as  aforesaid, 
or  in  funded  debt  as  aforesaid ;  at  the  expiration  of  six 
calendar  months  after  the  time  of  subscribing,  there  shall  be 
paid  the  further  sum  of  ten  dollars  on  each  share,  in  gold  or 
silver  coin  as  aforesaid,  and  twenty-five  dollars  more  in  coin 
as  aforesaid,  or  in  funded  debt  as  aforesaid  ;  at  the  expira- 
tion of  twelve  calendar  months  from  the  time  of  subscribing, 
there  shall  be  paid  the  further  sum  of  ten  dollars  on  each 
share,  in  gold  or  silver  coin  as  aforesaid,  and  twenty-five 
dollars  more,  in  coin  as  aforesaid,  or  in  funded  debt  as 
aforesaid. 

[Section  4  provides  for  the  payment  in  coin,  to  be  made  to  the  com- 
missioners by  subscribers  at  the  time  of  subscription,  for  the  transfer  of 
certificates  of  funded  debt  subscribed  by  them,  and  for  the  delivery  of 
coin  and  certificates  by  the  commissioners  to  the  president  and  directors, 
after  the  organization  of  the  bank.] 

SEC.  5.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  the  United  States  to  pay  and  redeem  the  funded  debt 
subscribed  to  the  capital  of  the  said  bank  at  the  rates  afore- 
said, in  such  sums,  and  at  such  times,  as  shall  be  deemed 
expedient,  anything  in  any  act  or  acts  of  Congress  to  the 
contrary  thereof  notwithstanding.  And  it  shall  also  be  law- 
ful for  tlie  president,  directors,  and  company,  of  the  said  bank, 
to  sell  and  transfer  for  gold  and  silver  coin,  or  bullion,  the 


181G.]      BANK  ACT:  SUBSCRIPTION  BY  GOVERNMENT.  83 

funded  debt  subscribed  to  the  capital  of  the  said  bank  as 
aforesaid :  Provided  always,  That  they  shall  not  sell  more 
thereof  than  the  sum  of  two  millions  of  dollars  in  any  one 
year ;  nor  sell  amr  part  thereof  at  any  time  within  the  United 
States,  without  previously  giving  notice  of  their  intention  to 
the  Secretary  of  the  Treasury,  and  offering  the  same  to  the 
United  States  for  the  period  of  fifteen  days,  at  least,  at 
the  current  price,  not  exceeding  the  rates  aforesaid. 

SEC.  6.  And  be  it  further  enacted,  That  at  the  opening  of 
subscription  to  the  capital  stock  of  the  said  bank,  the  Secre- 
tary of  the  Treasury  shall  subscribe,  or  cause  to  be  sub- 
scribed, on  behalf  of  the  United  States,  the  said  number  of 
seventy  thousand  shares,  amounting  to  seven  millions  of  dol- 
lars as  aforesaid,  to  be  paid  in  gold  or  silver  coin,  or  in  stock 
of  the  United  States,  bearing  interest  at  the  rate  of  five  per 
centum  per  annum  ;  and  if  payment  thereof,  or  of  any  part 
thereof,  be  made  in  public  stock,  bearing  interest  as  afore- 
said, the  said  interest  shall  be  payable  quarterly,  to  com- 
mence from  the  time  of  making  such  payment  on  account  of 
the  said  subscription,  and  the  principal  of  the  said  stock 
shall  be  redeemable  in  any  sums,  and  at  any  periods,  which 
the  government  shall  deem  fit.  And  the  Secretary  of  the 
Treasury  shall  cause  the  certificates  of  such  public  stock  to 
be  prepared,  and  made  in  the  usual  form,  and  shall  pay  and 
deliver  the  same  to  the  president,  directors,  and  company,  of 
the  said  bank  on  the  first  day  of  January,  one  thousand  eight 
hundred  and  seventeen,  which  said  stock  it  shall  be  lawful 
for  the  said  president,  directors,  and  company,  to  sell  and 
transfer  for  gold  and  silver  coin  or  bullion  at  their  discre- 
tion :  Provided,  They  shall  not  sell  more  than  two  millions 
of  dollars  thereof  in  any  one  year. 

SEC.  7.  And  be  it  further  enacted,  That  the  subscribers 
to  the  said  bank  of  the  United  States  of  America,  their  suc- 
cessors and  assigns,  shall  be,  and  are  hereby,  created  a  cor- 
poration and  body  politic,  by  the  name  and  style  of  "The 
president,  directors,  and  company,  of  the  bank  of  the  United 
States,"  and  shall  so  continue  until  the  third  day  of  March, 
in  the  year  one  thousand  eight  hundred  and  thirty-six,  and 


84:  BANK  ACT:  CHOICE  OF  DIRECTORS.  [1816. 

by  that  name  shall  be,  and  are  hereby,  made  able  and  capa- 
ble, in  law,  to  have,  purchase,  receive,  possess,  enjo}r,  and 
retain,  to  them  and  their  successors,  lands,  rents,  tenements, 
hereditaments,  goods,  chattels  and  effects,  of  whatsoever  kind, 
nature,  and  quality,  to  an  amount  not  exceeding,  in  the  whole, 
fifty-five  millions  of  dollars,  including  the  amount  of  the  capi- 
tal stock  aforesaid  ;  and  the  same  to  sell,  grant,  demise,  alien 
or  dispose  of;  to  sue  and  be  sued,  plead  and  be  im pleaded, 
answer  and  be  answered,  defend  and  be  defended,  in  all  state 
courts  having  competent  jurisdiction,  and  in  any  circuit  court 
of  the  United  States :  and  also  to  make,  have,  and  use,  a 
common  seal,  and  the  same  to  break,  alter,  and  renew,  at 
their  pleasure :  and  also  to  ordain,  establish,  and  put  in 
execution,  such  by-laws,  and  ordinances,  and  regulations, 
as  the}7  shall  deem  necessary  and  convenient  for  the  govern- 
ment of  the  said  corporation,  not  being  contrary  to  the  Con- 
stitution thereof,  or  to  the  laws  of  the  United  States ;  and 
generally  to  do  and  execute  all  and  singular  the  acts,  mat- 
ters, and  things,  which  to  them  it  shall  or  may  appertain  to 
do ;  subject,  nevertheless,  to  the  rules,  regulations,  restric- 
tions, limitations,  and  provisions,  hereinafter  prescribed  and 
declared. 

SEC.  8.  And  be  it  further  enacted,  That  for  the  manage- 
ment of  the  affairs  of  the  said  corporation,  there  shall  be 
twenty-five  directors,  five  of  whom,  being  stockholders,  shall 
be  annually  appointed  by  the  President  of  the  United  States, 
by  and  with  the  advice  and  consent  of  the  Senate,  not  more 
than  three  of  whom  shall  be  residents  of  anj-  one  state ; 
and  twenty  of  whom  shall  be  annually  elected  at  the  banking 
house  in  the  city  of  Philadelphia,  on  the  first  Monday  of 
January,  in  each  year,  by  the  qualified  stockholders  of  the 
capital  of  the  said  bank,  other  than  the  United  States,  and 
by  a  plurality  of  votes  then  and  there  actually  given,  accord- 
ing to  the  scale  of  voting  hereinafter  prescribed  :  Provided 
always,  That  no  person,  being  a  director  in  the  bank  of  the 
United  States,  or  an}-  of  its  branches,  shall  be  a  director 
of  any  other  bank ;  and  should  any  such  director  act  as 
a  director  in  any  other  bank,  it  shall  forthwith  vacate  his 


1816.]  BANK  ACT:  FUNDAMENTAL  ARTICLES.  85 

appointment  in  the  direction  of  the  bank  of  the  United 
States.  .  .  . 

[The  directors  are  annually  to  elect  one  of  their  number  to  be  presi- 
dent of  the  corporation,  and  in  case  of  his  death,  resignation,  or  re- 
moval, to  elect  another.  Any  vacancy  occurring  among  the  directors  is 
to  be  supplied  by  the  President  of  the  United  States  or  by  the  stock- 
holders, as  the  case  may  be ;  "  but  the  President  of  the  United  States 
alone  shall  have  power  to  remove  any  of  the  directors  appointed  by  him 
as  aforesaid."] 

SEC.  9.  And  be  it  further  enacted.  That  as  soon  as  the 
sum  of  eight  millions  four  hundred  thousand  dollars  in  gold 
and  silver  coin,  and  in  the  public  debt,  shall  have  been  actu- 
ally received  on  account  of  the  subscriptions  to  the  capital 
of  the  said  bank  (exclusively  of  the  subscription  aforesaid, 
on  the  part  of  the  United  States)  notice  thereof  shall  be 
given,  .  .  . 

[and  the  subscribers  shall  then  proceed  to  elect  directors  and  the  Presi- 
dent of  the  United  States  to  appoint  five  directors  on  behalf  of  the  gov- 
ernment, "  though  not  stockholders,"  and  the  bank  shall  thereupon  be 
organized  and  commence  its  operations,  the  directors  so  elected  and  ap- 
pointed serving  until  the  end  of  the  first  Monday  in  January  next. 

Section  10  authorizes  the  directors  to  appoint  and  govern  such  offi- 
cers, clerks,  and  servants  as  may  be  necessary  for  executing  their 
business.] 

SEC.  11.  And  be  it  further  enacted,  That  the  following 
rules,  restrictions,  limitations,  and  provisions,  shall  form 
and  be  fundamental  articles  of  the  constitution  of  the  said 
corporation,  to  wit: 

1.  The  number  of  votes  to  which  the  stockholders  shall 
be  entitled,  in  voting  for  directors,  shall  be  according  to 
the  number  of  shares  he,  she,  or  they,  respectively,  shall 
hold,  in  the  proportions  following,  that  is  to  say  ;  for  one 
share  and  not  more  than  two  shares,  one  vote ;  for  every 
two  shares  above  two,  and  not  exceeding  ten,  one  vote ;  for 
every  four  shares  above  ten,  and  not  exceeding  thirty,  one 
vote ;  for  every  six  shares  above  thirty,  and  not  exceeding 
sixty,  one  vote ;  for  every  eight  shares  above  sixty,  and  not 
exceeding  one  hundred,  one  vote ;  and  for  every  ten  shares 
above  one  hundred,  one  vote ;  but  no  person,  copartner- 


86  BANK  ACT:  FUNDAMENTAL  ARTICLES.  [1816. 

ship,  or  body  politic,  shall  be  entitled  to  a  greater  number 
than  thirty  votes ;  and  after  the  first  election,  no  share  or 
shares  shall  confer  a  right  of  voting,  which  shall  not  have 
been  holden  three  calendar  months  previous  to  the  day  of 
election.  And  stockholders  actually  resident  within  the 
United  States,  and  none  other,  may  vote  in  elections  by 
proxy. 

Second.  Not  more  than  three-fourths  of  the  directors 
elected  by  the  stockholders,  and  not  more  than  four-fifths 
of  the  directors  appointed  by  the  President  of  the  United 
States,  who  shall  be  in  office  at  the  time  of  an  annual  elec- 
tion, shall  be  elected  or  appointed  for  the  next  succeeding 
year;  and  no  director  shall  hold  his  office  more  than  three 
3-ears  out  of  four  in  succession :  but  the  director  who  shall 
be  the  president  at  the  time  of  an  election  may  always  be  re- 
appointed,  or  re-elected,  as  the  case  may  be. 

Third.  None  but  a  stockholder,  resident  citizen  of  the 
United  States,  shall  be  a  director ;  nor  shall  a  director  be 
entitled  to  any  emoluments  ;  but  the  directors  may  make  such 
compensation  to  the  president  for  his  extraordinary  attend- 
ance at  the  bank,  as  shall  appear  to  them  reasonable. 

Fourth.  Not  less  than  seven  directors  shall  constitute  a 
board  for  the  transaction  of  business,  of  whom  the  president 
shall  always  be  one,  except  in  case  of  sickness  or  necessary 
absence :  in  which  case  his  place  may  be  supplied  by  any 
other  director  whom  he,  by  writing,  under  his  hand,  shall 
depute  for  that  purpose.  And  the  director  so  deputed  may 
do  and  transact  all  the  necessary  business,  belonging  to 
the  office  of  the  president  of  the  said  corporation,  during 
the  continuance  of  the  sickness  or  necessary  absence  of  the 
president. 

Fifth.  A  number  of  stockholders,  not  less  than  sixty, 
who,  together,  shall  be  proprietors  of  one  thousand  shares 
or  upwards,  shall  have  power  at  any  time  to  call  a  general 
meeting  of  the  stockholders,  for  purposes  relative  to  the 
institution,  giving  at  least  ten  weeks'  notice  in  two  public 
newspapers  of  the  place  where  the  bank  is  seated,  and  speci- 
fying in  such  notice  the  object  or  objects  of  such  meeting. 


1816.]          BANK  ACT:  FUNDAMENTAL  ARTICLES.  87 

Sixth.  Each  cashier  or  treasurer,  before  he  enters  upon 
the  duties  of  his  office,  shall  be  required  to  give  bond,  with 
two  or  more  sureties,  to  the  satisfaction  of  the  directors,  in  a 
sum  not  less  than  fifty  thousand  dollars,  with  a  condition  for 
his  good  behavior,  and  the  faithful  performance  of  his  duties 
to  the  corporation. 

Seventh.  The  lands,  tenements,  and  hereditaments,  which 
it  shah1  be  lawful  for  the  said  corporation  to  hold,  shall  be 
only  such  as  shall  be  requisite  for  its  immediate  accommo- 
dation in  relation  to  the  convenient  transacting  of  its  busi- 
ness, and  such  as  shall  have  been  bona  fide  mortgaged  to  it 
by  way  of  security,  or  convej-ed  to  it  in  satisfaction  of  debts 
previously  contracted  in  the  course  of  its  dealings,  or  pur- 
chased at  sales,  upon  judgments  which  shall  have  been 
obtained  for  such  debts. 

Eighth.  The  total  amount  of  debts  which  the  said  corpo- 
ration shall  at  any  time  owe,  whether  by  bond,  bill,  note, 
or  other  contract,  over  and  above  the  debt  or  debts  due  for 
money  deposited  in  the  bank,  shall  not  exceed  the  sum  of 
thirty-five  millions  of  dollars,  unless  the  contracting  of  any 
greater  debt  shall  have  been  previously  authorized  by  law  of 
the  United  States.  In  case  of  excess,  the  directors  under 
whose  administration  it  shall  happen,  shall  be  liable  for  the 
same  in  their  natural  and  private  capacities :  and  an  action 
of  debt  ma}'  in  such  case  be  brought  against  them,  or  any  of 
them,  their  or  any  of  their  ieirs,  executors,  or  administra- 
tors, in  any  court  of  record  of  the  United  States,  or  either  of 
them,  by  any  creditor  or  creditors  of  the  said  corporation, 
and  may  be  prosecuted  to  judgment  and  execution,  any  con- 
dition, covenant,  or  agreement  to  the  contrary  notwithstand- 
ing. But  this  provision  shall  not  be  construed  to  exempt 
the  said  corporation  or  the  lands,  tenements,  goods,  or  chat- 
tels of  the  same  from  being  also  liable  for,  and  chargeable 
with,  the  said  excess. 

Such  of  the  said  directors,  who  may  have  been  absent 
when  the  said  excess  was  contracted  or  created,  or  who  may 
have  dissented  from  the  resolution  or  act  whereby  the  same 
was  so  contracted  or  created,  may  respectively  exonerate 


88  BANK  ACT:  FUNDAMENTAL  ARTICLES.  [1816. 

themselves  from  being  so  liable,  "by  forthwith  giving  notice 
of  the  fact,  and  of  their  absence  or  dissent,  to  the  Presi- 
dent of  the  United  States,  and  to  the  stockholders,  at  a 
general  meeting,  which  they  shall  have  power  to  call  for  that 
purpose. 

Ninth.  The  said  corporation  shall  not,  directly  or  indi- 
.rectly,  deal  or  trade  in  anything  except  bills  of  exchange, 
gold  or  silver  bullion,  or  in  the  sale  of  goods  really  and 
truly  pledged  for  money  lent  and  not  redeemed  in  due  time, 
or  goods  which  shall  be  the  proceeds  of  its  lands.  It  shall 
not  be  at  liberty  to  purchase  any  public  debt  whatsoever,  nor 
shall  it  take  more  than  at  the  rate  of  six  per  centum  per 
annum  for  or  upon  its  loans  or  discounts. 

Tenth.  No  loan  shall  be  made  by  the  said  corporation,  for 
the  use  or  on  account  of  the  government  of  the  United  States, 
to  an  amount  exceeding  five  hundred  thousand  dollars,  or  of 
an}*  particular  state,  to  an  amount  exceeding  fitly  thousand 
dollars,  or  of  any  foreign  prince  or  state,  unless  previously 
authorized  by  a  law  of  the  United  States. 

Eleventh.  The  stock  of  the  said  corporation  shall  be  as- 
signable and  transferable,  according  to  such  rules  as  shall  be 
instituted  in  that  behalf,  by  the  laws  and  ordinances  of  the 
same. 

Twelfth.  The  bills,  obligatory  and  of  credit,  under  the 
seal  of  the  said  corporation,  which  shall  be  made  to  any 
person  or  persons,  shall  be  assignable  by  endorsement 
thereupon,  under  the  hand  or  hands  of  such  person  or  per- 
sons, and  his,  her,  or  their  executors  or  administrators,  and 
his,  her  or  their  assignee  or  assignees,  and  so  as  absolutely 
to  transfer  and  vest  the  property  thereof  in  each  and  every 
assignee  or  assignees  successively,  and  to  enable  such  as- 
signee or  assignees,  and  his,  her  or  their  executors  or  admin- 
istrators, to  maintain  an  action  thereupon  in  his,  her,  or  their 
own  name  or  names :  Provided,  That  said  corporation  shall 
not  make  any  bill  obligatory,  or  of  credit,  or  other  obligation 
under  its  seal  for  the  pa}Tment  of  a  sum  less  than  five  thou- 
sand dollars.  And  the  bills  or  notes  which  may  be  issued 
by  order  of  the  said  corporation,  signed  by  the  president, 


181G.]          BANK  ACT:  FUNDAMENTAL  ARTICLES.  89 

and  countersigned  by  the  principal  cashier  or  treasurer 
thereof,  promising  the  .payment  of  money  to  any  person  or 
persons,  his,  her  or  their  order,  or.  to  bearer,  although  not 
under  the  seal  of  the  said  corporation,  shall  be  binding  and 
obligatory  upon  tho  same,  in  like  manner,  and  with  like  force 
and  effect,  as  upon  any  private  person  or  persons,  if  issued 
by  him,  her  or  them,  in  his,  her  or  their  private  or  natural 
capacity  or  capacities,  and  shall  be  assignable  and  negotiable 
in  like  manner  as  if  they  were  so  issued  by  such  private  per- 
son or  persons  ;  that  is  to  say,  those  which  shall  be  payable 
to  any  person  or  persons,  bis,  her  or  their  order,  shall  be 
assignable  by  endorsement,  in  like  manner,  and  with  the 
like  effect  as  foreign  bills  of  exchange  now  are ;  and  those 
which  are  payable  to  bearer  shall  be  assignable  and  negotia- 
ble by  delivery  only :  Provided,  That  all  bills  or  notes,  so 
to  be  issued  by  said  corporation,  shall  be  made  payable  on 
demand,  other  than  bills  or  notes  for  the  payment  of  a  sum 
not  less  than  one  hundred  dollars  each,  and  payable  to  the 
order  of  some  person  or  persons,  which  bills  or  notes  it  shall 
be  lawful  for  said  corporation  to  make  payable  at  any  time 
not  exceeding  sixty  clays  from  the  date  thereof. 

Thirteenth.  Half  yearly  dividends  shall  be  made  of  so 
much  of  the  profits  of  the  bank  as  shall  appear  to  the  direc- 
tors advisable ;  and  once  in  every  three  years  the  directors 
shall  la}*  before  the  stockholders,  at  a  general  meeting,  for 
their  information,  an  exact  and  particular  statement  of  the 
debts  which  shall  have  remained  unpaid  after  the  expiration 
of  the  original  credit,  for  a  period  of  treble  the  term  of  that 
credit,  and  of  the  surplus  of  the  profits,  if  any,  after  deduct- 
ing losses  and  dividends.  If  there  shall  be  a  failure  in  the 
payment  of  an}'  part  of  any  sum  subscribed  to  the  capital  of 
the  said  bank,  by  any  person,  copartnership  or  body  politic, 
the  party  failing  shall  lose  the  benefit  of  any  dividend  which 
may  have  accrued  prior  to  the  time  for  making  such  payment, 
and  during  the  delay  of  the  same. 

Fourteenth.  The  directors  of  the  said  corporation  shall 
establish  a  competent  office  of  discount  and  deposit  in  the 
District  of  Columbia,  whenever  any  law  of  the  United 


90  BANK  ACT:  FUNDAMENTAL  ARTICLES.          [1816. 

States  shall  require  such  an  establishment;  also  one  such 
office  of  discount  and  deposit  in  any  state  in  which  two 
thousand  shares  shall  have  been  subscribed  or  may  be  held, 
whenever,  upon  application  of  the  legislature  of  such  state, 
Congress  may,  by  law,  require  the  same :  Provided,  the 
directors  aforesaid  shall  not  be  bound  to  establish  such  office 
before  the  whole  of  the  capital  of  the  bank  shall  have  been 
paid  up.  And  it  shall  be  lawful  for  the  directors  of  the  said 
corporation  to  establish  offices  of  discount  and  deposit, 
wheresoever  they  shall  think  fit,  within  the  United  States 
or  the  territories  thereof,  and  to  commit  the  management  of 
the  said  offices,  and  the  business  thereof,  respectively  to 
such  persons,  and  under  such  regulations  as  they  shall  deem 
proper,  not  being  contrary  to  law  or  the  constitution  of  the 
bank.  Or,  instead  of  establishing  such  offices,  it  shall  be 
lawful  for  the  directors  of  the  said  corporation,  from  time 
to  time,  to  emplo}'  any  other  bank  or  banks,  to  be  first  ap- 
proved by  the  Secretary  of  the  Treasury,  at  any  place  or 
places  that  they  may  deem  safe  and  proper,  to  manage  and 
transact  the  business  proposed  as  aforesaid,  other  than  for 
the  purposes  of  discount,  to  be  managed  and  transacted  by 
such  offices,  under  such  agreements,  and  subject  to  such  regu- 
lations, as  they  shall  deem  just  and  proper.  Not  more  than 
thirteen  nor  less  than  seven  managers  or  directors,  of  every 
office  established  as  aforesaid,  shall  be  annually  appointed 
by  the  directors  of  the  bank,  to  serve  one  year ;  the}'  shall 
choose  a  president  from  their  own  number ;  each  of  them 
shall  be  a  citizen  of  the  United  States,  and  a  resident  of  the 
state,  territory  or  district,  wherein  such  office  is  established  ; 
and  not  more  than  three-fourths  of  the  said  managers  or 
directors,  in  office  at  the  time  of  an  annual  appointment, 
shall  be  reappointed  for  the  next  succeeding  year ;  and  no 
director  shall  hold  his  office  more  than  three  years  out 
of  four,  in  succession ;  but  the  president  may  be  alwaj-s 
reappointed. 

fifteenth.  The  officer  at  the  head  of  the  Treasury  De- 
partment of  the  United  States  shall  be  furnished,  from  time 
to  time,  as  often  as  he  may  require,  not  exceeding  once  a 


1816.]  BANK  ACT:  NOTES  RECEIVABLE  BY  UNITED  STATES    91 

week,  with  statements  of  the  amount  of  capital  stock  of  the 
said  corporation  and  of  the  debts  due  to  the  same ;  of  the 
moneys  deposited  therein ;  of  the  notes  in  circulation,  and 
of  the  specie  in  hand ;  and  shall  have  a  right  to  inspect  such 
general  accounts  in  the  books  of  the  bank  as  shall  relate  to 
the  said  statement:  Provided,  That  this  shall  not  be  con- 
strued to  imply  a  right  of  inspecting  the  account  of  any  pri- 
vate individual  or  individuals  with  the  bank. 

Sixteenth.  No  stockholder,  unless  he  be  a  citizen  of  the 
United  States,  shall  vote  in  the  choice  of  directors. 

Seventeenth.  No  note  shall  be  issued  of  less  amount  than 
five  dollars. 

[Sections  12  and  13  prescribe  the  penalties  to  be  imposed  in  case  the 
corporation,  or  any  person  to  its  use,  shall  deal  in  goods,  wares,  or  mer- 
chandise contrary  to  the  provisions  of  this  act,  or  shall  lend  any  sum  of 
money  for  the  use  of  the  government  of  the  United  States,  or  of  any 
particular  state,  or  any  foreign  prince  or  state,  except  as  allowed  above, 
and  without  being  previously  authorized  thereto  by  law.] 

SEC.  14.  And  be  it  further  enacted,  That  the  bills  or  notes 
of  the  said  corporation  originally  made  payable,  or  which 
shall  have  become  payable  on  demand,  shall  be  receivable  in 
all  payments  to  the  United  States,  unless  otherwise  directed 
by  act  of  Congress. 

SEC.  15.  And  be  it  further  enacted,  That  during  the  con- 
tinuance of  this  act,  and  whenever  required  by  the  Secretary 
of  the  Treasury,  the  said  corporation  shall  give  the  neces- 
sary facilities  for  transferring  the  public  funds  from  place 
to  place,  within  the  United  States,  or  the  territories  thereof, 
and  for  distributing  the  same  in  pa3"ment  of  the  public  credit- 
ors, without  charging  commissions  or  claiming  allowance  on 
account  of  difference  of  exchange,  and  shall  also  do  and  per- 
form the  several  and  respective  duties  of  the  commissioners 
of  loans  for  the  several  states,  or  of  any  one  or  more  of 
them,  whenever  required  by  law. 

SEC.  16.  And  be  it  further  enacted,  That  the  deposits  of 
the  money  of  the  United  States,  in  places  in  which  the  said 
bank  and  branches  thereof  may  be  established,  shall  be  made 
in  said  bank  or  branches  thereof,  unless  the  Secretary  of  the 


92  BANK  ACT:  SPECIE  SUSPENSION  FORBIDDEN.     [1816. 

Treasury  shall  at  any  time  otherwise  order  and  direct;  in 
which  case  the  Secretary  of  the  Treasury  shall  immediately 
la}*  before  Congress,  if  in  session,  and  if  not,  immediately 
after  the  commencement  of  the  next  session,  the  reasons  of 
such  order  or  direction. 

SEC.  17.  And  be  it  further  enacted,  That  the  said  corpo- 
ration shall  not  at  any  time  suspend  or  refuse  payment  in 
gold  and  silver,  of  any  of  its  notes,  bills  or  obligations  ;  nor 
of  any  moneys  received  upon  deposit  in  said  bank,  or  in 
any  of  its  offices  of  discount  and  deposit.  And  if  the  said 
corporation  shall  at  an}'  time  refuse  or  neglect  to  pay  on  de- 
mand any  bill,  note  Qi1  obligation  issued  by  the  corporation, 
according  to  the  contract,  promise  or  undertaking  therein 
expressed ;  or  shall  neglect  or  refuse  to  pay  on  demand  any 
moneys  received  in  said  bank,  or  in  any  of  its  offices  afore- 
said, on  deposit,  to  the  person  or  persons  entitled  to  receive 
the  same,  then,  and  in  every  such  case,  the  holder  of  an}' 
such  note,  bill,  or  obligation,  or  the  person  or  persons  enti- 
tled to  demand  and  receive  such  moneys  as  aforesaid,  shall 
respectively  be  entitled  to  receive  and  recover  interest  on  the 
said  bills,  notes,  obligations  or  moneys,  until  the  same  shall 
be  fully  paid  and  satisfied,  at  the  rate  of  twelve  per  centum 
per  annum  from  the  time  of  such  demand  as  aforesaid  :  Pro- 
vided, That  Congress  may  at  an}'  time  hereafter  enact  laws 
enforcing  and  regulating  the  recovery  of  the  amount  of  the 
notes,  bills,  obligations  or  other  debts,  of  which  payment 
shall  have  been  refused  as  aforesaid,  with  the  rate  of  interest 
above  mentioned,  vesting  jurisdiction  for  that  purpose  in  any 
courts,  either  of  law  or  equity,  of  the  courts  of  the  United 
States,  or  territories  thereof,  or  of  the  several  states,  as  they 
may  deem  expedient. 

[Sections  18  and  19  prescribe  the  penalties  for  forging,  counterfeiting, 
or  altering  bills  or  notes  of  the  bank  or  checks  drawn  upon  it,  and 
for  passing  any  forged,  counterfeited,  or  altered  bill,  note,  or  check, 
and  also  for  engraving  any  plate  to  be  used  in  forging  or  counterfeit- 
ing, or  having  in  possession  any  such  plate,  or  blank  notes  in  the 
similitude  of  those  issued  by  the  corporation,  or  any  paper  for  use  in 
counterfeiting.] 


1816.]          BANK   ACT  :    BONUS   TO   THE    GOVERNMENT.  93 

SEC.  20.  And  be  it  further  enacted,  That  in  consideration 
of  the  exclusive  privileges  and  benefits  conferred  by  this  act, 
upon  the  said  bank,  the  president,  directors,  and  company 
thereof,  shall  pay  to  the  United  States,  out  of  the  corporate 
funds  thereof,  the  sum  of  one  million  and  five  hundred  thou- 
sand dollars,  in  three  equal  payments ;  that  is  to  say :  five 
hundred  thousand  dollars  at  the  expiration  of  two  years ; 
five  hundred  thousand  dollars  at  the  expiration  of  three 
years ;  and  five  hundred  thousand  dollars  at  the  expira- 
tion of  four  3'ears  after  the  said  bank  shall  be  organized, 
and  commence  its  operations  in  the  manner  herein  before 
provided. 

SEC.  21.  And  be  it  further  enacted,  That  no  other  bank 
shall  be  established  b}-  anjr  future  law  of  the  United  States 
during  the  continuance  of  the  corporation  hereby  created, 
for  which  the  faith  of  the  United  States  is  hereby  pledged. 
Provided,  Congress  may  renew  existing  charters  for  banks 
in  the  District  of  Columbia,  not  increasing  the  capital 
thereof,  and  may  also  establish  any  other  bank  or  banks 
in  said  district,  with  capitals  not  exceeding,  in  the  whole, 
six  millions  of  dollars,  if  they  shall  deem  it  expedient. 
And,  notwithstanding  the  expiration  of  the  terra  for  which 
the  said  corporation  is  created,  it  shall  be  lawful  to  use  the 
corporate  name,  style,  and  capacity,  for  the  purpose  of  suits 
for  the  final  settlement  and  liquidation  of  the  affairs  and 
accounts  of  the  corporation,  and  for  the  sale  and  disposition 
of  their  estate,  real,  personal,  and  mixed :  but  not  for  any 
other  purpose,  or  in  any  other  manner  whatsoever,  nor  for  a 
period  exceeding  two  years  after  the  expiration  of  the  said 
term  of  incorporation. 

SEC.  22.  And  be  it  further  enacted,  That  if  the  subscrip- 
tions and  payments  to  said  bank  shall  not  be  made  and  com- 
pleted so  as  to  enable  the  same  to  commence  its  operations, 
or  if  the  said  bank  shall  not  commence  its  operations  on  or 
before  the  first  Monday  in  April  next,  then,  and  in  that 
case,  Congress  may,  at  any  time,  within  twelve  months 
thereafter,  declare,  by  law,  this  act  null  and  void. 

SEC.  23.   And  be.it  farther  enacted,  That  it  shall,  at  all 


94  BANK  ACT:  VIOLATION  OF  CHARTER.  [1816. 

times,  be  lawful,  for  a  committee  of  either  House  of  Con- 
gress, appointed  for  that  purpose,  to  inspect  the  books,  and 
to  examine  into  the  proceedings  of  the  corporation  hereby 
created,  and  to  report  whether  the  provisions  of  this  charter 
have  been,  by  the  same,  violated  or  not ;  and  whenever  any 
committee,  as  aforesaid,  shall  find  and  report,  or  the  Presi- 
dent of  the  United  States  shall  have  reason  to  believe  that 
the  charter  has  been  violated,  it  may  be  lawful  for  Congress 
to  direct,  or  the  President  to  order  a  scire  facias  to  be  sued 
out  of  the  circuit  court  of  the  district  of  Pem^lvania,  in 
the  name  of  the  United  States,  (which  shall  be  executed 
upon  the  president  of  the  corporation  for  the  time  being,  at 
least  fifteen  days  before  the  commencement  of  the  term  of 
said  court,)  calling  on  the  said  corporation  to  show  cause 
wherefore  the  charter  hereby  granted,  shall  not  be  declared 
forfeited  ;  and  it  shall  be  lawful  for  the  said  court,  upon  the 
return  of  the  said  scire  facias,  to  examine  into  the  truth  of 
the  alleged  violation,  and  if  such  violation  be  made  appear, 
then  to  pronounce  and  adjudge  that  the  said  charter  is 
forfeited  and  annulled.  Provided,  however,  Every  issue  of 
fact  which  may  be  joined  between  the  United  States  and  the 
corporation  aforesaid,  shall  be  tried  by  a  jury.  And  it  shall 
be  lawful  for  the  court  aforesaid  to  require  the  production  of 
such  of  the  books  of  the  corporation  as  it  may  deem  neces- 
sary for  the  ascertainment  of  the  controverted  facts  :  and  the 
final  judgment  of  the  court  aforesaid,  shall  be  examinable  in 
the  Supreme  Court  of  the  United  States,  by  writ  of  error,  and 
ma}'  be  there  reversed  or  affirmed,  according  to  the  usages 

of  law. 

[Approved,  April  10,  1816.    3  Statutes  at  Large,  266.] 

NOTE.  —  By  the  Act  of  March  3, 1819,  3  Statutes  at  Large,  508,  the  pro- 
visions of  the  above  act  which  relate  to  the  right  of  voting  for  directors 
are  enforced,  by  prescribing,  in  every  case  where  more  than  thirty  votes 
are  offered  by  any  one  person,  oaths  as  to  the  actual  ownership  of  the 
shares,  to  be  taken  by  the  person  offering  the  votes  and  by  the  signer 
of  any  proxy.  And  the  same  act  provides  against  the  bribery  by  gift 
or  promise  of  the  president  or  either  of  the  directors  of  the  bank,  or 
of  either  of  its  branches,  in  any  matter  coming  before  the  said  president 
and  directors  for  decision,  by  making  the  briber  and  the  person  bribed 


1817.]  RESUMPTION   OF   SPECIE   PAYMENT.  95 

punishable  on  conviction  by  fine  and  imprisonment  at  the  discretion  of 
the  court,  and  further  disqualifies  them  from  holding  any  office  of  trust 
or  profit  under  the  corporation,  or  any  office  of  honor,  trust,  or  profit 
under  the  United  States. 


1815-16,  Resolution  No.  VIII. — A  Resolution  relative  to  the 
more  effectual  collection  of  the  public  revenue. 

Resolved  by  the  Senate  and  House  of  Representa- 
tives .  .  .  That  the  Secretary  of  the  Treasury  be,  and  he 
hereby  is,  required  and  directed  to  adopt  such  measures  as 
he  may  deem  necessary  to  cause,  as  soon  as  may  be,  all 
duties,  taxes,  debts,  or  sums  of  money,  accruing  or  becom- 
ing payable  to  the  United  States,  to  be  collected  and  paid  in 
the  legal  currency  of  the  United  States,  or  treasury  notes,  or 
notes  of  the  bank  of  the  United  States  as  by  law  provided 
and  declared,  or  in  notes  of  banks  which  are  pa3*able  and 
paid  on  demand  in  the  said  legal  currency  of  the  United 
States,  and  that  from  and  after  the  twentieth  day  of  Febru- 
ary next,  no  such  duties,  taxes,  debts,  or  sums  of  money 
accruing  or  becoming  paj-able  to  the  United  States  as  afore- 
said, ought  to  be  collected  or  received  otherwise  than  in  the 
legal  currency  of  the  United  States,  or  treasury  notes,  or 
notes  of  the  bank  of  the  United  States,  or  in  notes  of  banks 
which  are  payable  and  paid  on  demand  in  the  said  legal  cur- 
rency of  the  United  States. 

[Approved,  April  30, 1816.    3  Statutes  at  Large,  343.] 

1816-17,  Chap.  XXXVIII.  —  An  Act  transferring  the  duties 
of  commissioners  of  loans  to  the  Sank  of  the  United 
States,  and  abolishing  the  office  of  commissioner  of 
loans. 

[This  act  requires  the  Bank  of  the  United  States  and  its  branches  to 
perform  the  duties  of  commissioners  of  loans  for  the  several  states,  and 
provides  that  all  acts  now  performed  by  the  said  commissioners  in  trans- 
ferring stock  from  the  books  of  one  loan  office  to  another,  or  to  the  books 
of  the  treasury,  or  from  the  books  of  the  treasury  to  the  books  of  the 
loan  offices,  shall  be  performed  by  the  president  of  the  Bank  of  the 
United  States,  the  presidents  of  the  several  branches  of  the  said  bank, 


90  POWER   TO    BORROW   WITHDRAWN.  [1817. 

and  by  the  presidents  of  such  state  banks  as  the  Bank  of  the  United 
States  may  employ  in  states  where  it  has  no  branches. 

It  is  further  made  the  duty  of  the  commissioners  of  loans  and  of  the 
agent  for  military  pensions,  where  there  is  no  such  commissioner,  and 
in  states  where  there  is  a  bank  established  by  law,  to  deliver  up  the 
records  and  papers  of  their  respective  offices  to  the  president  of  the 
Bank  of  the  United  States,  or  of  a  branch  thereof,  or  of  such  state  hank 
as  may  be  employed ;  and  the  office  of  commissioner  of  loans  is  accord- 
ingly abolished  upon  such  delivery.] 

[Approved,  March  3,  1817.    3  Statutes  at  Large,  360.] 

1816-17,  Chap.  LXXXV.  —  An  Act  to  repeal  so  much  of 
any  acts  now  in  force  as  authorize  a  loan  of  money, 
or  an  issue  of  Treasury  notes. 

[Sections  1  and  2  repeal  so  much  of  any  acts  of  Congress  as  au- 
thorizes the  President  to  borrow  money  on  the  credit  of  the  United 
States,  and  to  cause  certificates  of  stock  to  be  issued  therefor,  or  to  cause 
treasury  notes  to  be  prepared  and  issued  :  provided,  that  no  securities 
for  money  already  borrowed  shall  thus  be  invalidated,  nor  shall  the  right 
of  the  holders  of  treasury  notes  already  issued  be  affected.] 

SEC.  3.  And  be  it  further  enacted,  That  so  much  of  the  act, 
entitled  "  An  act  to  authorize  the  issuing  of  treasury  notes 
for  the  service  of  the  j'ear  one  thousand  eight  hundred  and 
fifteen,"  as  makes  it  lawful  for  the  Secretary  of  the  Treasury 
to  cause  the  treasury  notes,  [in]  cases  therein  mentioned,  to 
be  re-issued  and  applied  anew  to  the  same  purposes,  and  in 
the  same  manner,  as  when  originally  issued,  be,  and  the  same 
is  hereby  repealed. 

SEC.  4.  And  be  it  further  enacted,  That  all  treasury  notes 
which  are  now,  or  shall  hereafter  become,  the  propert}'  of 
the  United  States,  (from  reimbursement,  purchase,  ex- 
change, or  receipts,  on  account  of  taxes,  duties,  and  de- 
mands,) shall  be  cancelled  or  destroyed  at  such  times,  and 
under  such  regulations  and  securities,  as  the  commissioners 
of  the  sinking  fund,  with  the  approbation  of  the  President, 
shall  establish  and  determine. 

[Approved,  March  3,  1817.    3  Statutes  at  Large,  377.] 


1817.]          NEW   PROVISION    FOR   THE    SINKING   FUND.  97 

1816-17,  Chap.  LXXXVII.  —  An  Act  to  provide  for  the 
redemption  of  the  public  debt. 

Be  it  enacted,  .  .  .  That  so  much  of  any  act  or  acts  of 
Congress,  as  makes  appropriations  for  the  purchase  or  reim- 
bursement of  the  principal,  or  for  the  payment  of  the  inter- 
est, of  the  funded  debt  of  the  United  States  be,  and  the 
same  is  hereby  repealed. 

SEC.  2.  And  be  it  farther  enacted,  That  from  the  pro- 
ceeds of  the  duties  on  merchandise  imported,  and  on  the 
tonnage  of  vessels,  and  from  the  proceeds  of  the  internal 
duties,  and  of  the  sales  of  western  lands,  now  belonging,  or 
which  may  hereafter  belong,  to  the  United  States,  the  annual 
sum  of  ten  millions  of  dollars  be,  and  the  same  is  yearly,  ap- 
propriated to  the  sinking  fund  ;  and  the  said  sum  is  hereby  de- 
clared to  be  vested  in  the  commissioners  of  the  sinking  fund, 
in  the  same  manner  as  the  mone}*s  heretofore  appropriated 
to  the  said  fund,  to  be  applied  by  the  said  commissioners  to 
the  payment  of  interest  and  charges,  and  to  the  reimburse- 
ment or  purchase  of  the  principal  of  the  public  debt ;  and  it 
shall  be  the  duty  of  the  Secretary  of  the  Treasuiy  annually 
to  cause  to  be  paid  to  the  commissioners  of  the  sinking  fund, 
the  said  sum  of  ten  millions  of  dollars,  in  such  pa3'ments, 
and  at  such  times  in  each  year,  as  the  situation  of  the  treas- 
ury will  best  admit :  Provided,  That  all  such  payments  as 
may  be  necessary  to  enable  the  said  commissioners  to  dis- 
charge or  reimburse  any  demands  against  the  United  States, 
on  account  of  the  principal  or  interest  of  the  debt  which 
shall  be  actually  due  in  conformity  to  the  engagements  of  the 
said  United  States,  shall  [and]  may  be  made  at  such  times 
in  each  year  as  will  enable  the  said  commissioners  faithfully 
and  punctually  to  compby  with  such  engagement:  Pro- 
vided, also,  That  any  money  which  may  have  been  paid, 
before  the  passage  of  this  act,  to  the  commissioners  of  the 
sinking  fund  for  the  year  one  thousand  eight  hundred  and 
seventeen,  as  a  part  of  the  annual  appropriation  heretofore 
made  by  law  to  that  fund,  shall  be  held  to  be  a  payment 
for  the  3'ear  one  thousand  eight  hundred  and  seventeen,  on 

7 


98  FURTHER   PAYMENTS   TO   THE    SINKING   FUND.        [1817. 

account  of  the  appropriation  of  ten  millions  hereinbefore 
directed. 

SEC.  3.  And  be  it  further  enacted,  That  in  addition  to 
the  sum  of  ten  millions  of  dollars,  hereinbefpre  annually 
appropriated  to  the  sinking  fund,  there  shall  be  appropri- 
ated for  the  year  one  thousand  eight  hundred  and  seventeen, 
to  the  sinking  fund,  the  further  sura  of  nine  millions  of  dol- 
lars, to  be  paid  out  of  any  moneys  in  the  treasury  not  other- 
wise appropriated,  at  such  time  within  the  year  as  the 
Secretary  of  the  Treasury  shall  deem  most  conducive  to 
the  public  interest,  to  be  applied  by  the  commissioners  of 
the  sinking  fund  to  the  purchase  or  redemption  of  the  public 
debt :  and  it  shall  be  lawful  for  the  Secretary  of  the  Treas- 
ury, at  any  time  during  the  year  one  thousand  eight  hundred 
and  seventeen,  if  he  shall  deem  it  expedient  to  do  so,  to 
cause  to  be  paid  to  the  commissioners  of  the  sinking  fund 
a  further  sum,  not  exceeding  four  millions  of  dollars,  which, 
shall  be  considered  as  an  advance  to  that  amount,  on  the 
appropriation  of  ten  millions,  payable  in  the  next  year,  and 
the  said  amount  shall  also  be  applied  by  the  said  commis- 
sioners to  the  purchase  or  redemption  of  the  public  debt, 
and  the  commissioners  aforesaid  are  authorized  and  directed 
to  apply  the  sums  by  this  act  appropriated  to  the  purchase 
and  redemption  of  the  public  debt,  holden  by  the  Bank  of 
the  United  States,  if  not  otherwise  to  be  obtained  on  the 
terms  stated  in  this  act. 

SEC.  4.  And  be  it  further  enacted,  That  after  the  year 
one  thousand  eight  hundred  and  seventeen,  whenever  there 
shall  be,  at  any  time  after  an  adjournment  of  Congress,  in 
any  year,  a  surplus  of  money  in  the  treasury,  above  the 
sums  appropriated  for  the  service  of  such  year,  the  payment 
of  which  to  the  commissioners  of  the  sinking  fund,  will  yet 
leave  in  the  treasury,  at  the  end  of  the  year,  a  balance  equal 
to  two  millions  of  dollars,  then  such  surplus  shall  be,  and 
the  same  is  hereb}*,  appropriated  to  the  sinking  fund,  to  be 
paid  at  such  times  as  the  situation  of  the  treasury  will  best 
permit ;  and  shall  be  applied,  by  the  commissioners  thereof, 
to  the  purchase  or  redemption  of  the  public  debt. 


1817.]          PURCHASES  OF  PUBLIC  DEBT.  99 

SEC.  5.  And  be  it  further  enacted,  That  whenever,  in  any 
year,  there  shall  be  a  surplus  in  the  sinking  fund,  be}'ond 
the  amount  of  interest  and  principal,  which  may  be  actually 
due  and  payable  to  [b}r]  the  United  States,  in  such  year,  in 
conformity  with  their  engagements,  the  commissioners  of  the 
sinking  fund  shall  be,  and  they  are  hereby,  authorized,  with 
the  approbation  of  the  President  of  the  United  States,  to 
purchase  the  debt  of  the  United  States,  at  its  market  price, 
if  such  price  shall  not  exceed  the  following  rates,  viz :  for 
stock  of  the  United  States,  bearing  an  interest  of  three  per 
centum  per  annum,  there  shall  not  be  paid  more  than  sixtj-- 
five  dollars  for  every  hundred  dollars  of  the  principal  thereof: 
for  stock  bearing  an  annual  interest  of  six  per  centum  per 
annum,  there  shall  not  be  paid  more  than  the  par  or  true 
value  thereof;  and  for  stock  bearing  an  annual  interest  of 
seven  per  centum,  there  shall  not  be  paid  an  advance  above 
the  par  value  thereof,  which  shall  exceed,  for  every  hundred 
dollars  of  stock,  the  computed  value  of  an  annuity  of  one 
dollar  for  a  number  of  years,  equal  to  that  during  which  the 
stock  so  purchased  will  not  be  reimbursable  at  the  pleasure 
of  government,  estimating,  in  such  computation,  the  interest 
of  money  at  six  per  centum  per  annum. 

SEC.  6.  And  be  it  further  enacted,  That  all  certificates 
of  public  debt  which,  by  paj'ment  or  purchase,  have  become, 
or  hereafter  shall  become,  the  property  of  the  United  States, 
shall  be  cancelled  or  destro}-ed,  at  such  times,  and  under 
such  regulations  and  securities,  as  the  commissioners  of  the 
sinking  fund,  with  the  approbation  of  the  President,  shall 
establish  and  determine.  And  no  interest  shall  be  consid- 
ered as  accruing,  and  no  further  payment  shall  be  made,  on 
account  of  such  debt,  the  certificates  of  which  have  been  so 
cancelled  and  destroyed. 

SEC.  7.  And  be  it  further  enacted,  That  nothing  in  this 
act  contained  shall  be  construed  to  prevent  the  Congress  of 
the  United  States,  if  war  shall  occur  with  any  foreign  power, 
from  applying,  to  any  object  of  public  service,  an}'  surplus 
of  the  amount  herein  appropriated  to  the  sinking  fund,  which 
may  be  left  in  any  year  after  paying  the  interest  and  princi- 


100  CERTIFICATES    OF   REVOLUTIONARY   DEBT.  [1820. 

pal  which  may  be  actually  due  and  payable  by  the  United 
States,  in  conformity  with  their  engagements.  Nor  shall 
anything  in  this  act  be  construed  to  repeal,  alter,  or  affect, 
any  of  the  provisions  of  any  former  act,  pledging  the  faith 
of  the  United  States  to  the  payment  of  the  interest  or  princi- 
pal of  the  public  debt,  but  all  such  payments  shall  continue 
to  be  made  at  the  time  heretofore  prescribed  by  law,  except- 
ing onh'  as  before  provided,  that  no  payments  shall  be  made 
on  certificates  which  have  become  the  property  of  the  United 

States. 

[Approved,  March  3,  1817.    3  Statutes  at  Large,  379.] 

1817-18,  Chap.  LVI.  — An  Act  to  authorize  the  payment  of 
certain  certificates. 

[This  act  suspends  for  the  term  of  two  years  from  its  passage,  so  much 
of  the  acts  of  March  3,  1795,  and  June  12,  1798,  on  page  44,  as  bar  from 
settlement  loan  office  and  final  settlement  certificates  and  indents  of  inter- 
est; and  provides  that,  upon  the  presentation  at  the  Treasury  and  adjust- 
ment of  such  claims,  they  shall  be  paid,  with  interest  at  the  rate  of  six  per 
cent,  from  the  date  of  the  last  payment  of  interest  endorsed  thereon.] 

[Approved,  April  13,  1818.     3  Statutes  at  Large,  425  ] 

NOTE.  —  By  the  Act  of  May  7,  1822,  having  the  same  title  as  the  above' 
the  provisions  of  the  acts  of  1795  and  1798  are  further  suspended  for  the 
the  term  of  two  years  and  from  thence  until  the  end  of  the  next  session 
of  Congress.  3  ibid.  697.  And  by  the  Act  of  July  14, 1832,  the  act  of  1822 
is  revived  and  continued  in  force  for  the  term  of  four  years  and  from 
thence  until  the  end  of  the  next  session  of  Congress.  4  ibid.  602. 

1819-20,  Chap.  CIII.  —  An  Act  to  authorize  the  President 
of  the  United  States  to  borrow  a  sum  .not  exceeding 
three  millions  of  dollars. 

[Section  1  empowers  the  President  to  borrow,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  three  millions  of  dollars,  at  a  rate 
not  exceeding  five  per  cent.,  and  reimbursable  at  any  time  after  Jan- 
uary 1,  1832,  or  at  a  rate  not  exceeding  six  per  cent.,  and  reimbursable 
at  pleasure,  to  be  applied  in  defraying  any  public  expenses  authorized 
by  law. 

Section  2  authorizes  the  Bank  of  the  United  States  to  lend  the  sum  or 
any  part  thereof,  and  further  authorizes  the  sale  of  certificates  of  the 
stock,  "provided,  that  no  stock  shall  be  sold  under  par." 


1822.]  LOAN   ACTS.  101 

Section  3,  authorizing  the  employment  of  agents  in  disposing  of  the 
stock,  follows  the  terms  of  section  3  of  the  Act  of  February  8,  1813,  on 
page  67. 

Section  4  makes  the  same  sinking  fund  provisions  as  section  3  of  the 
Act  of  March  14,  1812,  on  page  62,  with  the  substitution  of  "ten  mil- 
lions of  dollars  "  for  eight  millions,  as  the  amount  of  the  total  annual 
appropriation  for  the  public  debt.] 

[Approved,  May  15,  1820.    3  Statutes  at  Large,  682.] 

1820-21,  Chap.  XXXVIII.  —  An  Act  to  authorize  the  Presi- 
dent of  the  United  States  to  borrow  a  sum  not  exceeding 
Jive  millions  of  dollars. 

[Section  1  empowers  the  President  to  borrow,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  five  millions  of  dollars,  at  a  rate  not 
exceeding  five  per  cent.,  and  reimbursable  at  any  time  after  January  1, 
1835,  to  be  applied  in  defraying  any  public  expenses  authorized  by  law. 

Sections  2,  3,  and  4  are  identical  with  sections  2,  3,  and  4  of  the  Act  of 
May  15,  1820,  above.] 

[Approved,  March  3,  1821.    3  Statutes  at  Large,  635.] 

1821-22,  Chap.  VIII.  —  An  Act  authorizing  the  transfer  of 
certain  certificates  of  the  funded  debt  of  the  United  States. 

Be  it  enacted,  .  .  .  That  the  certificates  of  the  funded 
debt  of  the  United  States,  which,  upon  the  assumption  of  the 
debts  of  the  several  creditor  states,  were  issued  in  their  favor, 
respectively,  be,  and  hereby  are,  made  transferable,  accord- 
ing to  the  rules  and  forms  instituted  for  the  purpose  of  trans- 
fers of  the  public  debt. 

[Approved,  February  19,  1822.    3  Statutes  at  Large,  651-1 

1821-22,  Chap.  XXVIII.  —  An  Act  to  authorize  the  Secre- 
tary of  the  Treasury  to  exchange  a  stock  bearing  an 
interest  of  five  per  cent,  for  certain  stocks  bearing  an 
interest  of  six  and  seven  per  cent. 

Be  it  enacted  .  .  .  That  a  subscription,  to  the  amount  of 
twelve  millions  of  dollars,  of  the  seven  per  cent,  stock,  and 
of  the  six  per  cent,  stock  of  the  year  eighteen  hundred  and 
twelve,  and  also  for  fourteen  millions  of  the  six  per  cent, 
stock  of  the  years  eighteen  hundred  and  thirteen,  fourteen, 


102  TERMS    OF   EXCHANGE.  [1822. 

and  fifteen,  be,  and  the  same  is  hereby,  proposed  :  for  which 
purpose  books  shall  be  opened  at  the  Treasury  of  the  United 
States,  and  at  the  several  loan  offices,  on  the  first  day  of 
May,  one  thousand  eight  hundred  and  tweutj'-two,  to  con- 
tinue open  until  the  first  day  of  July  next  thereafter,  for  such 
parts  of  the  above-mentioned  description  of  stocks  as  shall, 
on  the  day  of  subscription,  stand  on  the  books  of  the  treas- 
ury, and  on  those  of  the  several  loan  offices,  respectively ; 
which  subscription  shall  be  effected  by  a  transfer  to  the  United 
States,  in  the  manner  provided  by  law  for  such  transfers,  of 
the  credit  or  credits  standing  on  the  said  books,  and  by  a 
surrender  of  the  certificates  of  the  stock  so  subscribed. 

[Section  2  provides  that  for  any  sum  thus  subscribed  of  the  six  per 
cent,  stocks  of  1812  and  1813,  the  subscribers  shall  be  entitled  to  an  equal 
amount  of  stock  bearing  interest  at  five  per  cent,  and  payable  quarterly 
from  June  30,  1822,  and  redeemable  at  the  pleasure  of  the  United  States, 
one  third  after  December  31,  1830,  one  third  after  December  31,  1831,  and 
one  third  after  December  31,  1832 ;  and  that  for  any  sum  subscribed  of 
the  seven  per  cent,  stock,  the  subscribers  shall  be  entitled  to  an  equal 
amount  of  five  per  cent,  stock,  bearing  interest  and  dated  as  above,  and 
redeemable  in  like  manner  after  December  31,  1833:  provided,  that  no 
reimbursement  shall  be  made  of  any  new  certificate,  except  for  its  whole 
amount,  nor  until  after  six  months'  notice. 

Section  3  provides  that  if  the  subscription  authorized  by  section  1  is 
not  completed  by  July  1,  1822,  the  remainder  of  the  amount  may  be  sub- 
scribed at  any  time  before  October  1,  1822;  and  that  for  so  much  as  may 
be  subscribed  of  the  six  per  cent,  stocks  of  1812, 1813, 1814,  and  1815,  the 
subscribers  shall  be  entitled  to  an  equal  amount  of  stock,  bearing  inter- 
est at  five  per  cent,  and  payable  quarterly  from  September  30,  1822,  and 
redeemable  after  1830, 1831,  and  1832  as  above ;  and  that  for  so  much  of 
the  seven  per  cent,  stock  as  may  be  subscribed,  the  subscribers  shall  be 
entitled  to  an  equal  amount  of  five  per  cent,  stock,  with  interest  payable 
as  above,  and  redeemable  in  like  manner  after  1833,  the  same  proviso 
being  made  as  to  the  conditions  of  reimbursement.] 

SEC.  4.  And  be  it  further  enacted,  That  the  same  funds 
which  have  heretofore  been,  and  now  are,  pledged  by  law,  for 
the  payment  of  the  interest,  and  for  the  redemption  or  reim- 
bursement of  the  stock  which  may  be  subscribed  by  virtue  of 
the  provisions  of  this  act,  shall  remain  pledged  for  the  p&y- 
ment  of  the  interest  accruing  on  the  stock  created  by  reason 
of  such  subscription,  and  for  the  redemption  or  reimbursement 


1822.]   TREASURY  NOTES  GOOD  ONLY  AT  THE  TREASURY.    103 

of  the  principal  of  the  same.  It  shall  be  the  duty  of  the  com- 
missioners of  the  sinking  fund  to  cause  to  be  applied  and  paid, 
out  of  the  said  fund,  yearly  and  every  year,  such  sum  and 
sums  as  may  be  annually  wanted  to  discharge  the  interest 
accruing  on  the  stock  which  may  be  created  by  virtue  of  this 
act.  The  said  commissioners  are  hereby  authorized  to  apply, 
from  time  to  time,  such  sum  and  sums,  out  of  the  said  fund, 
as  they  may  think  proper,  towards  redeeming,  by  purchase 
or  by  reimbursement,  in  conformity  with  the  provisions  of 
this  act,  the  principal  of  the  said  stock.  And  such  part  of 
the  annual  sum  of  ten  millions  of  dollars,  vested  by  law  in 
the  said  commissioners,  as  ma}'  be  necessary  and  wanting 
for  the  above  purposes,  shall  be  and  continue  appriated  [ap- 
propriated] to  the  payment  of  interest  and  redemption  of  the 
public  debt,  until  the  whole  of  the  stock  which  may  be  created 
under  the  provisions  of  this  act  shall  have  been  redeemed  or 
reimbursed. 

SEC.  5.  And  be  it  further  enacted,  That  nothing  in  this 
act  contained  shall  be  construed  in  any  wise  to  alter,  abridge, 
or  impair,  the  rights  of  those  creditors  of  the  United  States 
who  shall  not  subscribe  to  the  loan  to  be  opened  by  virtue  of 

this  act. 

[Approved,  April  20,  1822.     3  Statuses  at  Large,  663.] 

1821-22,  Chap.  XL VII.  — An  Act  relating  to  treasury  notes. 

He  it  enacted,  .  .  .  That,  from  and  after  the  passage  of 
this  act,  no  treasun'  note  shall  be  received  in  payment  on 
account  of  the  United  States,  or  paid,  or  funded,  except  at 
the  treasury  of  the  United  States. 

[Approved,  May  3,  1822.     3  Statutes  at  Large,  675.] 

1823-2*,  Chap.  XVI.  —  An  Act  authorizing  the  commis- 
sioners of  the  sinking  fund  to  purchase  the  seven  per 
cent,  stock  of  the  United  States,  in  the  year  one  thou- 
sand eight  hundred  and  twenty-four. 

Be  it  enacted,  .  .  .  That  th£  commissioners  of  the  sink- 
ing fund  be,  and  they  are  hereby,  authorized  to  purchase, 


104      SEVEN  PER  CENT.  STOCK  TO  BE  PURCHASED.   [1824. 

during  the  year  one  thousand  eight  hundred  and  twenty-four, 
any  stock  of  the  United  States,  bearing  an  intei-est  of  seven 
per  centum  per  annum,  not  exceeding  the  sum  of  eight  mil- 
lions six  hundred  and  ten  thousand  dollars,  upon  such  terms 
as  they  may  think  proper,  not  exceeding  the  following  rates 
above  the  principal  sum  purchased,  that  is  to  say : 

For  all  such  stock  as  they  may  purchase  before  the  first 
day  of  April  next,  at  a  rate  not  exceeding  two  dollars  for 
ever}T  sum  of  one  hundred  dollars,  in  addition  to  the  interest 
which  would  have  accrued  on  that  day  upon  the  said  stock  : 

For  all  such  stock  which  they  may  purchase  between  the 
first  day  of  April  and  the  first  day  of  July  next,  at  a  rate  not 
exceeding  seventy-five  cents  on  every  sum  of  one  hundred 
dollars,  in  addition  to  the  interest  which  would  have  accrued 
on  the  daj-  last  mentioned  : 

For  all  such  stock  which  the}-  may  purchase  between  the 
first  day  of  July  arid  the  first  day  of  October  next,  at  a  rate 
not  exceeding,  on  every  sum  of  one  hundred  dollars,  the 
amount  of  interest  which  would  have  accrued  on  the  day  last 
mentioned :  and 

For  all  such  stock  which  they  may  purchase  between  the 
first  day  of  October  next,  and  the  first  day  of  January,  one 
thousand  eight  hundred  and  twenty-five,  at  a  rate  not  exceed- 
ing the  principal  and  the  interest  which  shall  have  accrued  at 
the  day  of  purchase. 

SEC.  2.  And  be  it  further  enacted,  That  the  said  commis- 
sioners are  hereby  authorized  to  make  such  purchases,  under 
the  foregoing  restrictions,  at  such  times  and  places  as  they 
may  deem  most  expedient,  out  of  any  moneys  in  the  treas- 
ury, heretofore  appropriated  for  the  redemption  of  the  pub- 
lic debt,  or  out  of  any  money  in  the  treasury  not  otherwise 
appropriated. 

[Approved,  January  22, 1824.    4  Statutes  at  Large,  4.] 


1824.]  SPANISH   CLAIMS  STOCK.  105 

1823-24,  Chap.  CXL.  —  An  act  to  authorize  the  creation  of 
a  stock  to  an  amount  not  exceeding  five  millions  of  dol- 
lars, to  provide  for  the  awards  of  the  commissioners 
under  the  treaty  with  Spain,  of  the  twenty-second  of 
February,  one  thousand  eight  hundred  and  nineteen. 

Be  it  enacted,  .  .  .  That,  for  the  purpose  of  providing 
funds  to  discharge  the  awards  of  the  commissioners  under 
the  treaty  with  Spain,  of  the  twenty-second  day  of  Febru- 
ary, in  the  }-ear  of  our  Lord  one  thousand  eight  hundred  and 
nineteen,  the  Secretary  of  the  Treasury  be,  and  he  is  hereby, 
authorized,  with  the  approbation  of  the  President  of  the 
United  States,  to  cause  to  be  issued  and  sold  to  the  Bank 
of  the  United  States,  or  others,  at  a  sum  not  less  than  the 
par  value  thereof,  certificates  of  stock  of  the  United  States, 
to  any  amount  not  exceeding  the  sum  of  five  millions  of  dol- 
lars, and  bearing  an  interest  of  not  exceeding  four  and  one 
half  per  centum  per  annum,  from  the  period  of  the  sale 
thereof;  which  stock,  so  created,  shall  be  redeemable  at  the 
pleasure  of  the  United  States,  at  an}-  time  after  the  first  day 
of  January,  in  the  year  one  thousand  eight  hundred  and 
thirt3'-two.  And,  upon  the  sale  of  such  stock,  in  manner 
aforesaid,  credit  or  credits  to  the  proprietors  thereof,  shall 
thereupon  be  entered  and  given  on  the  books  of  the  treasury, 
in  like  manner  as  for  the  present  funded  debt ;  which  said 
credits  or  stock  shall  thereafter  be  transferable  as  other  pub- 
lic stock  of  the  United  States. 

[Section  2  provides  for  the  award  and  application  of  the  moneys  thus 
borrowed.] 

[Approved,  May  24,  1824.    4  Statutes  at  Large,  33.] 

1823-24,  Chap.  CXCII.  —  An  Act  to  authorize  the  Secretary 
of  the  Treasury  to  exchange  a  stock,  bearing  an  interest 
of  four  and  one-half  per  cent.^for  certain  stocks  bear- 
ing an  interest  of  six  per  cent. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United 
States  be,  and  he  is  hereb}',  empowered  to  borrow,  on  or 
before  the  first  day  of  April  next,  on  the  credit  of  the  United 


106  ISSUE    OF   FOUR   AND    ONE-HALF   PEE   CENTS.        [1825. 

States,  a  sum  not  exceeding  five  millions  of  dollars,  at  a  rate 
of  interest,  pa3'able  quarter-yearly,  not  exceeding  four  and 
one-half  per  centum  per  annum,  and  reimbursable  at  the 
pleasure  of  the  government,  at  any  time  after  the  thirty-first 
day  of  December,  one  thousand  eight  hundred  and  thirt}-- 
oue,  to  be  applied  in  addition  to  the  moneys  which  may  be 
in  the  treasury  at  the  time  of  borrowing  the  same,  to  pay 
off  and  discharge  such  part  of  the  six  per  cent,  stock  of  the 
United  States,  of  the  year  one  thousand  eight  hundred  and 
twelve,  as  may  be  redeemable  after  the  first  day  of  January 
next. 

[Section  2  authorizes  the  Bank  of  the  United  States  to  lend  the  sum 
or  any  part  thereof,  and  further  authorizes  the  sale  of  certificates  of  the 
new  stock :  "prodded,  that  no  stock  be  sold  under  par." 

Sections  3  and  4  provide  that  a  subscription,  to  the  amount  of  fifteen 
million  dollars  of  the  six  per  cent,  stock  of  1813  shall  be  opened  on  July 
1,  1824,  to  continue  open  until  October  1  following;  and  that  for  so 
much  as  shall  be  thus  subscribed,  the  subscribers  shall  be  entitled  to  an 
equal  amount  of  stock,  bearing  interest  at  the  rate  of  four  and  one-half 
per  cent,  and  payable  quarterly  from  September  80,  1824,  and  redeema- 
ble at  the  pleasure  of  the  United  States,  one  half  after  December  31, 
1832,  and  one  half  after  December  31,  1833:  provided  that  no  reimburse- 
ment shall  be  made  of  any  new  certificate  except  for  its  whole  amount, 
nor  until  after  six  months'  notice. 

Sections  5  and  6  contain  the  same  provisions  for  the  sinking  fund  and 
for  saving  the  rights  of  non-subscribing  creditors  as  those  contained  in 
sections  4  and  6  of  the  Act  of  April  20,  1822,  on  page  102.] 

[Approved,  May  26,  1824.    4  Statutes  at  Large,  73.] 

1824-25,  Chap.  C.  —  An  Act  authorizing  the  Secretary  of  the 

Treasury  to  borrow  a  sum  not  exceeding  twelve  millions 

of  dollars,  or  to  exchange  a  stock  of  four  and  one-half 

per  cent,  for  a  certain  stock  bearing  an  interest  of  six 

per  cent. 

Jie  it  enacted,  .  .  .  That  the  President  of  the  United 
States  be,  and  he  is  hereby,  authorized  to  borrow,  on  or 
before  the  first  da}*  of  Januaiy  next,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  twelve  millions  of  dol- 
lars, at  a  rate  of  interest  payable  quarterlj*,  not  exceeding 
four  and  one-half  per  centum  per  annum,  six  millions  whereof 


1830.]       FURTHER   PROVISION   FOR  THE   PUBLIC   DEBT.  107 

reimbursable  at  the  pleasure  of  the  government,  at  any  time 
after  the  thirty-first  day  of  December,  in  the  year  eighteen 
hundred  and  twenty-eight ;  and  six  millions  at  any  time  after 
the  thirty-first  day  of  December,  in  the  3'ear  eighteen  hun- 
dred and  twenty-nine,  to  be  applied,  in  addition  to  the 
moneys  which  may  be  in  the  treasury  at  the  time  of  bor- 
rowing the  same,  to  pay  off  and  discharge  such  part  of  the 
six  per  cent,  stock  of  the  United  States,  of  the  year  one 
thousand  eight  hundred  and  thirteen,  as  may  be  redeemable 
after  the  first  day  of  January  next. 

[Section  2  is  identical  with  section  2  of  the  Act  of  May  26,  1824, 
above. 

Sections  3  and  4  provide  that  a  subscription  to  the  amount  of  twelve 
million  dollars  of  the  six  per  cent,  stock  of  1813  shall  be  opened  on 
April  1,  1825,  to  continue  open  until  October  1  following,  all  thus  sub- 
scribed to  be  considered  as  part  of  the  twelve  millions  authorized  by 
section  1 ;  and  that  for  so  much  as  shall  be  thus  subscribed,  the  subscrib- 
ers shall  be  entitled  to  an  equal  amount  of  stock  bearing  interest  not 
exceeding  four  and  one  half  per  cent,  and  payable  quarterly  from  De- 
cember 31,  1825,  and  redeemable  at  the  pleasure  of  the  United  States, 
one  half  after  December  31,  1828,  and  one  half  after  December  31,  1829 : 
provided,  that  no  reimbursement  shall  be  made  of  any  new  certificate  ex- 
cept for  its  whole  amount,  nor  until  after  six  months'  notice. 

Sections  5  and  6  contain  the  same  provisions  for  the  sinking  fund,  and 
for  saving  the  rights  of  non-subscribing  creditors,  as  those  contained  in 
sections  4  and  5  of  the  Act  of  April  20,  1822,  on  page  102.] 

[Approved,  March  3,  1825.    4  Statutes  at  Large,  129.] 

1829-30,  Chap.  LXXVIII.  —  An  Act  to  authorize  the  com- 
missioners of  the  sinking  fund  to  redeem  the  public 
debt  of  the  United  States. 

Be  it  enacted,  .  .  .  That  whenever  in  the  opinion  of  the 
Secretary  of  the  Treasury,  the  state  of  the  treasury  will 
admit  of  the  application  of  a  greater  sum  than  ten  millions 
of  dollars  in  any  one  year,  to  the  payment  of  interest  and 
charges,  and  to  the  reimbursement  or  purchase  of  the  princi- 
pal of  the  public  debt,  it  shall  be  lawful  for  him,  with  the 
approbation  of  the  President  of  the  United  States,  to  cause 
such  surplus  to  be  placed  at  the  disposal  of  the  commission- 
ers of  the  sinking  fund,  and  the  same  shall  be  applied  by 


108       NOTES  BELOW  PAR  NOT  TO  BE  PAID  OUT.    [1834. 

them  to  the  reimbursement  or  purchase  of  the  principal  of 
the  public  debt,  at  such  times  as  the  state  of  the  treasury 
will  best  admit. 

SEC.  2.  And  be  it  farther  enacted,  That,  whenever,  in  any 
year,  there  shall  be  a  surplus  in  the  sinking  fund  beyond  the 
amount  of  interest  and  principal  of  the  debt  which  may  be 
actually  due  and  payable  by  the  United  States  in  such  year, 
in  conformity  with  their  engagements,  it  shall  be  lawful  for 
the  commissioners  of  the  sinking  fund  to  apply  such  surplus 
to  the  purchase  of  any  portion  of  the  public  debt,  at  such 
rates  as,  in  their  opinion,  may  be  advantageous  to  the 
United  States ;  anything  in  any  act  of  Congress  to  the  con- 
traiy  notwithstanding. 

SEC.  3.  And  be  it  further  enacted,  That  the  fourth  and 
fifth  sections  of  the  act,  entitled  "  An  act  to  provide  for  the 
redemption  of  the  public  debt,"  approved  on  the  third  of 
March,  one  thousand  eight  hundred  and  seventeen,  are 
hereby  repealed. 

[Approved,  April  24,  1830.    4  Statutes  at  Large,  396.] 

1833-34,  Chap.  XCII.  —  An  Act  making  appropriations  for 
the  civil  and  diplomatic  expenses  of  government  for  the 
year  one  thousand  eight  hundred  and  thirty-four. 

SEC.  3.  And  be  it  further  enacted,  That  no  payment 
of  the  money,  appropriated  by  this  act,  or  any  other  act 
passed  at  the  present  session  of  Congress,  shall  be  made  in 
the  note  or  notes  of  any  bank  which  shall  not  be  at  par  value 
at  the  place  where  such  payment  may  be  made,  provided 
that  nothing  herein  contained  shall  be  construed  to  make 
aii3Tthing  but  gold  and  silver  a  tender  in  payment  of  any 
debt  due  from  the  United  States  to  individuals. 

[Approved,  June  27,  1834.    4  Statutes  at  Large, 


NOTE.  —  The  above  provision  is  repeated  without  change  as  section  4 
of  the  appropriation  act  of  March  3,  1835,  4  ibid.,  771. 


1836.]       OFFICE  OF  COMMISSIONER  OF  LOANS  ABOLISHED.         109 

1835-36,  Chap.  L.  —  An  Act  to  repeal  so  much  of  the  act 
entitled  ' k  An  act  transferring  the  duties  of  Commis- 
sioner of  Loans  to  the  Bank  of  the  United  States,  and 
abolishing  the  office  of  Commissioner  of  Loans"  as  re- 
quires the  J3ank  of  the  United  States  to  perform  the 
duties  of  Commissioner  of  Loans  for  the  several  /States. 

[Section  1  repeals  the  provisions  of  the  act  of  March  3,  1817,  which 
transfer  the  duties  of  commissioner  of  loans  to  the  United  States  Bank, 
its  branches  and  state  banks  employed  by  it,  and  requires  the  immediate 
transfer  of  all  papers  and  records  relating  to  said  duties  to  the  Secretary 
of  the  Treasury.] 

SEC.  2.  And  be  it  further  enacted,  That  the  Bank  of  the 
United  States  and  its  several  branches,  and  the  State  Banks 
employed  by  the  Bank'  of  the  United  States,  performing  the 
duties  of  Commissioners  of  Loans,  shall  be,  and  the}'  are 
hereby  required  to  pay  into  the  Treasury  of  the  United 
States,  within  three  months  after  the  passing  of  this  act,  all 
the  money  in  their  possession  for  the  redemption  of  the 
public  debt  of  the  United  States,  and  the  interest  thereon 
remaining  in  their  hands,  which  has  not  been  applied  for  by 
the  person  or  persons  entitled  to  receive  the  same. 

SEC.  3.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Secretary  of  the  Treasury  to  pay  over  to  the 
person  or  persons  entitled  to  receive  the  same,  the  amount 
so  received  into  the  Treasury  by  virtue  of  the  second  section 
of  this  act,  out  of  any  money  in  the  Treasury  not  otherwise 
appropriated. 

SEC.  4.  And  be  it  further  enacted,  That  nothing  contained 
in  this  act  shall  be  construed  to  authorize  the  appointment 
of  a  Commissioner  or  Commissioners  of  loans  in  an}'  State, 
District,  or  Territory  of  the  United  States. 

[Approved,  April  11,  1836.     5  Statutes  at  Large,  8.] 

NOTE.  —  By  the  Act  of  April  20,  1836,  5  Statutes  at  Large,  16,  it  is 
also  provided  that  all  acts  and  parts  of  acts  enabling  the  Bank  of  the 
United  States  or  its  branches  to  pay  pensions  granted  under  the  author- 
ity of  the  United  States  are  repealed,  and  that  payments  of  pensions 
shall  be  made  by  such  persons  and  corporations  as  the  Secretary  of 
War  may  direct. 


110  USE    OF   BANK   NOTES    BY   THE    GOVERNMENT.        [1836. 

1835-36,  Chap.  LII.  —  An  Act  making  appropriations  for 
the  payment  of  the  revolutionary  and  other  pensioners 
of  the  United  States,  for  the  year  one  thousand  eight 
hundred  and  thirty-six. 

SEC.  2.  And  be  it  further  enacted,  That  hereafter,  no 
bank  note  of  less  denomination  than  ten  dollars,  and  that 
from  and  after  the  third  day  of  March,  anno  Domini,  eigh- 
teen hundred  and  thii^'-seven,  no  bank  note  of  less  denomi- 
nation than  twenty  dollars  shall  be  offered  in  payment  in  an}' 
case  whatsoever  in  which  monej-  is  to  be  paid  by  the  United 
States  or  the  Post  Office  Department,  nor  shall  any  bank 
note,  of  amr  denomination,  be  so  offered,  unless  the  same 
shall  be  payable,  and  paid  on  demand,  in  gold  or  silver  coin, 
at  the  place  where  issued,  and  which  shall  not  be  equivalent 
to  specie  at  the  place  where  offered,  and  convertible  into  gold 
or  silver  upon  the  spot,  at  the  will  of  the  holder,  and  with- 
out delay  or  loss  to  him  ;  Provided,  That  nothing  herein 
contained  shall  be  construed  to  make  anything  but  gold  or 
silver  a  legal  tender  by  an)1  individual,  or  by  the  United 

States. 

[Approved,  April  14,  1836.    5  Statutes  at  Large,  9.] 

1835-36,  Chap.  XCVII.  —  An  Act  repealing  the  fourteenth 
section  of  the  "Act  to  incorporate  the  subscribers  to 
the  Hank  of  the  United  States,"  approved  April  tenth, 
eighteen  hundred  and  sixteen. 

Be  it  enacted,  .  .  .  That  the  fourteenth  section  of  the  act 
entitled  "An  act  to  incorporate  the  subscribers  to  the  Bank 
of  the  United  States,"  approved  April  tenth,  eighteen  hun- 
dred and  sixteen,  shall  be,  and  the  same  is  hereby,  repealed. 
[Approved,  June  15,  1836.     5  Statutes  at  Large,  48.] 

1835-36,  Chap.  CXV.  —  An  Act  to  regulate  the  deposites  of 
the  public  money. 

Be  it  enacted,  .  .  .  That  it  shall  be  the  duty  of  the  Secre- 
tary of  the  Treasur}'  to  select  as  soon  as  may  be  practicable 
and  employ  as  the  depositories  of  the  money  of  the  United 


1836.]  DEPOSITS   OF   PUBLIC   MONEY.  Ill 

States,  such  of  the  banks  incorporated  by  the  several  States, 
by  Congress  for  the  District  of  Columbia,  or  by  the  Legisla- 
tive Councils  of  the  respective  Territories  for  those  Territo- 
ries, as  may  be  located  at,  adjacent  or  convenient  to  the 
points  or  places  at  which  the  revenues  ma}-  be  collected,  or 
disbursed,  and  in  those  States,  Territories  or  Districts  in 
which  there  are  no  banks,  or  in  which  no  bank  can  be  em- 
ployed as  a  dcposite  bank,  and  within  which  the  public  col- 
lections or  disbursements  require  a  depository,  the  said 
Secretary  ma}'  make  arrangements  with  a  bank  or  banks, 
in  some  other  State,  Territory  or  District,  to  establish  an 
agenc}',  or  agencies,  in  the  States,  Territories  or  Districts  so 
destitute  of  banks,  as  banks  of  deposite  ;  and  to  receive 
through  such  agencies  such  deposites  of  the  public  money, 
as  may  be  directed  to  be  made  at  the  points  designated, 
and  to  make  such  disbursements  as  the  public  service  may 
require  at  those  points ;  the  duties  and  liabilities  of  every 
bank  thus  establishing  any  such  agency  to  be  the  same  in 
respect  to  its  ageiKrv,  as  are  the  duties  and  liabilities  of 
deposite  banks  generally  under  the  provisions  of  this  act: 
Provided,  That  at  least  one  such  bank  shall  be  selected  in 
each  State  and  Territoiy,  if  any  can  be  found  in  each  State 
and  Territory  willing  to  be  emplo}-ed  as  depositories  of  the 
public  money,  upon  the  terms  and  conditions  hereinafter 
prescribed,  and  continue  to  conform  thereto ;  and  that  the 
Secretaiy  of  the  Treasury  shall  not  suffer  to  remain  in  any 
deposite  bank,  an  amount  of  the  public  mone}-s  more  than 
equal  to  three-fourths  of  the  amount  of  its  capital  stock 
actually  paid  in,  for  a  longer  time  than  may  be  necessary 
to  enable  him  to  make  the  transfers  required  by  the  twelfth 
section  of  this  act ;  and  that  the  banks  so  selected,  shall  be, 
in  his  opinion,  safe  depositories  of  the  public  mone}*,  and 
shall  be  willing  to  undertake  to  do  and  perform  the  several 
duties  and  services,  and  to  conform  to  the  several  conditions 
prescribed  by  this  act. 

"  [Under  sections  2  and  3  it  is  provided  that  if  at  any  place  there  is  no 
bank  in  safe  condition  or  having  sufficient  capital  to  become  a  deposi- 
tory of  the  moneys  collected,  or  willing  to  act  as  such,  the  Secretary  of 


112  DUTIES   OF   DEPOSIT   BANKS.  [1836. 

the  Treasury  may  order  such  moneys  to  be  deposited  in  banks  in  the 
same  State  or  in  adjacent  States  ;  but  nothing  shall  prevent  Congress 
from  ordering  the  removal  of  public  money  at  any  time,  or  from  chang- 
ing the  terms  of  deposit,  or  prevent  the  banks  from  declining  to  act 
further  as  depositories,  upon  making  tender  of  all  public  moneys  on 
hand.  And  no  bank  shall  be  employed  until  it  shall  have  given  to  the 
Secretary  of  the  Treasury  a  statement  of  its  condition  and  of  the  cur- 
rent price  of  its  stock,  a  list  of  its  directors,  a  copy  of  its  charter,  and  the 
other  information  necessary  to  form  a  judgment  of  its  safety.] 

SEC.  4.  And  be  it  further  enacted,  That  the  said  banks, 
before  they  shall  be  employed  as  the  depositories  of  the 
public  money,  shall  agree  to  receive  the  same,  upon  the 
following  terms  and  conditions,  to  wit : 

first.  Each  bank  shall  furnish  to  the  Secretary  of  the 
Treasury,  from  time  to  time,  as  often  as  he  may  require, 
not  exceeding  once  a  week,  statements  setting  forth  its  con- 
dition and  business,  as  prescribed  in  the  foregoing  section 
of  this  act,  except  that  such  statements  need  not,  unless  re- 
quested by  the  said  Secretary,  contain  a  list  of  the  directors, 
or  a  cop}'  of  the  charter.  And  the  said  banks  shall  furnish 
to  the  Secretary  of  the  Treasury,  and  to  the  Treasurer  of 
the  United  States,  a  weekly  statement  of  the  condition 
of  his  account  upon  their  books.  And  the  Secretary  of 
the  Treasury  shall  have  the  right,  by  himself,  or  an  agent 
appointed  for  that  purpose,  to  inspect  such  general  accounts 
in  the  books  of  the  bank,  as  shall  relate  to  the  said  state- 
ments :  Provided,  That  this  shall  not  be  construed  to  imply 
a  right  of  inspecting  the  account  of  any  private  individual 
or  individuals  with  the  bank. 

/Secondly.  To  credit  as  specie,  all  sums  deposited  therein 
to  the  credit  of  the  Treasurer  of  the  United  States,  and  to 
pa}'  all  checks,  warrants,  or  drafts,  drawn  on  such  deposites, 
in  specie  if  required  by  the  holder  thereof. 

Thirdly.  To  give,  whenever  required  by  the  Secretary 
of  the  Treasury,  the  necessary  facilities  for  transferring  the 
public  funds  from  place  to  place,  within  the  United  States, 
and  the  Territories  thereof,  and  for  distributing  the  same  in 
payment  of  the  public  creditors,  without  charging  commis- 
sions or  claiming  allowance  on  account  of  difference  of 
exchange. 


1836.]  NOTES   ISSUED    BY   DEPOSIT    BANKS.  113 

Fourthly.  To  render  to  the  Government  of  the  United 
States  all  the  duties  and  services  heretofore  required  by  law 
to*be  performed  by  the  late  Bank  of  the  United  States  and 
its  several  branches  or  offices. 

SEC.  5.  And  be  it  further  enacted,  That  no  bank  shall 
be  selected  or  continued  as  a  place  of  deposite  of  the  public 
money  which  shall  not  redeem  its  notes  and  bills  on  demand 
in  specie ;  nor  shall  any  bank  be  selected  or  continued  as 
aforesaid,  which  shall  after  the  fourth  of  July,  in  the  year 
one  thousand  eight  hundred  and  thirty-six,  issue  or  pay  out 
any  note  or  bill  of  a  less  denomination  than  five  dollars  ;  nor 
shall  the  notes  or  bills  of  any  bank  be  received  in  payment 
of  an}'  debt  due  to  the  United  States  which  shall,  after  the 
said  fourth  day  of  Juty,  in  the  year  one  thousand  eight  hun- 
dred and  thirty-six,  issue  any  note  or  bill  of  a  less  denomi- 
nation than  five  dollars. 

[By  sections  6  and  7  the  Secretary  of  the  Treasury  is  authorized,  if 
necessary,  to  require  from  any  bank  collateral  security  for  the  safe  keep- 
ing of  public  moneys  deposited,  and  the  due  performance  of  duties  re- 
quired by  this  act,  and  to  enter  into  contracts  with  the  banks  for  the 
performance  of  such  duties  and  services. 

Section  8  provides  that  no  bank  employed  as  a  place  of  deposit  shall 
be  discontinued  as  a  depository,  nor  shall  the  public  moneys  be  with- 
drawn from  it,  unless  the  bank  shall  fail  to  perform  some  duty,  or  refuse 
to  pay  its  notes  in  specie,  or  fail  to  keep  on  hand  such  amount  of  specie 
as  the  Secretary  of  the  Treasury  deems  necessary  for  its  safety  as  a 
depository.  In  every  such  case  it  is  made  the  duty  of  the  Secretary 
to  discontinue  the  bank  as  a  depository,  to  withdraw  from  it  all  public 
moneys,  and  to  report  the  facts  immediately  to  Congress ;  and  he  is  au- 
thorized to  deposit  the  moneys  withdrawn  in  other  banks;  or,  in  default 
of  any  bank  to  receive  them,  the  moneys  shall  be  kept  by  the  Treasurer 
of  the  United  States,  subject  to  disbursement  according  to  law. 

Sections  9  and  10  provide  that  until  the  Secretary  shall  have  em- 
ployed banks  as  depositories  under  this  act,  the  several  State  and  Dis- 
trict banks  now  employed  shall  continue  to  be  depositories  upon  the 
same  conditions  as  heretofore ;  and  it  is  mude  his  duty  to  lay  before 
Congress  at  the  beginning  of  every  annual  session  a  statement  of  the 
number  and  names  of  the  banks  employed,  their  condition,  and  the 
amount  deposited  in  each ;  and  whenever  any  bank  is  selected  as  depos- 
itory, he  is  required  to  report  its  name  and  condition  at  once,  if  Con- 
gress is  in  session,  and  if  not,  then  during  the  first  week  of  the  next 
session.] 

8 


114  TRANSFER   OF   PUBLIC   FUNDS.  [1836. 

SEC.  1 1 .  And  be  it  further  enacted,  That  whenever  the 
amount  of  public  deposites  to  the  credit  of  the  Treasurer  of 
the  United  States,  in  any  bank  shall,  for  a  whole  quarter 
of  a  year,  exceed  the  one-fourth  part  of  the  amount  of  the 
capital  stock  of  such  bank  actually  paid  in,  the  banks  shall 
allow  and  pay  to  the  United  States,  for  the  use  of  the  ex- 
cess of  the  deposites  over  the  one-fourth  part  of  its  capital, 
an  interest  at  the  rate  of  two  per  centum  per  annum,  to  be 
calculated  for  each  quarter,  upon  the  average  excesses  of 
the  quarter ;  and  it  shall  be  the  duty  of  the  Secretary  of  the 
Treasury,  at  the  close  of  each  quarter,  to  cause  the  amounts 
on  deposite  in  each  deposite  bank  for  the  quarter,  to  be  ex- 
amined and  ascertained,  and  to  see  that  all  sums  of  interest 
accruing  under  the  provisions  of  this  section,  are,  by  the 
banks  respectively  passed  to  the  credit  of  the  Treasurer  of 
the  United  States  in  his  accounts  with  the  respective  banks. 

SEC.  12.  And  be  it  further  enacted,  That  all  warrants  or 
orders  for  the  purpose  of  transferring  the  public  funds  from 
the  banks  in  which  they  now  are,  or  ma}-  hereafter  be  depos- 
ited, to  other  banks,  whether  of  deposite  or  not,  for  the  pur- 
pose of  accommodating  the  banks  to  which  the  transfer  may 
be  made,  or  to  sustain  their  credit,  or  for  any  other  purpose 
whatever,  except  it  be  to  facilitate  the  public  disbursements, 
and  to  compty  with  the  provisions  of  this  act,  be,  and  the 
same  are  hereby,  prohibited  and  declared  to  be  illegal ;  and 
in  cases  where  transfers  shall  be  required  for  purposes  of 
equalization  under  the  provisions  of  this  act,  in  consequence 
of  too  great  an  accumulation  of  deposites  in  any  bank,  such 
transfers  shall  be  made  to  the  nearest  deposite  banks  which 
are  considered  safe  and  secure,  and  which  can  receive  the 
moneys  to  be  transferred  under  the  limitations  in  this  act 
imposed  :  Provided,  That  it  may  be  lawful  for  the  President 
of  the  United  States  to  direct  transfers  of  public  money  to 
be  made  from  time  to  time  to  the  mint  and  branch  mints  of 
the  United  States,  for  supplying  metal  for  coining. 

[The  supplementary  act  of  July  4,  1836,  declares  that  nothing  herein 
contained  shall  be  construed  to  prevent  the  making  of  transfers  from 
banks  in  one  State  or  Territory  to  banks  in  another,  whenever  required 


1836.]  DEPOSIT   OF   SURPLUS   WITH   THE   STATES.  115 

in  order  to  prevent  inconvenient  accumulations,  or  to  produce  a  ,due 
equality  and  just  proportion.    6  Statutes  at  Large,  115.] 

SEC.  13.  And  be  it  further  enacted,  That  the  money  which 
shall  be  in  the  Treasury  of  the  United  States,  on  the  first 
day  of  January,  eighteen  hundred  and  thirt\'-seven,  reserving 
the  sum  of  five  millions  of  dollars,  shall  be  deposited  with 
such  of  the  several  States,  in  proportion  to  their  respective 
representation  in  the  Senate  and  House  of  Representatives 
of  the  United  States,  as  shall,  by  law,  authorize  their 
Treasurers,  or  other  competent  authorities  to  receive  the 
same  on  the  terms  hereinafter  specified ;  and  the  Secretary 
of  the  Treasury  shall  deliver  the  same  to  such  Treasurers,  or 
other  competent  authorities,  on  receiving  certificates  of  de- 
posite  therefor,  signed  by  such  competent  authorities,  in  such 
form  as  may  be  prescribed  by  the  Secretary  aforesaid  ;  which 
certificates  shall  express  the  usual  and  legal  obligations,  and 
pledge  the  faith  of  the  State,  for  the  safe  keeping  and  repay- 
ment thereof,  and  shall  pledge  the  faith  of  the  States  receiv- 
ing the  same,  to  pay  the  said  moneys,  and  every  part  thereof, 
from  time  to  time,  whenever  the  same  shall  be  required,  by 
the  Secretary  of  the  Treasury,  for  the  purpose  of  defraying 
any  wants  of  the  public  treasmy,  bej^ond  the  amount  of  the 
five  millions  aforesaid  :  Provided,  That  if  any  State  declines 
to  receiAre  its  proportion  of  the  surplus  aforesaid,  on  the 
terms  before  named,  the  same  shall  be  deposited  with  the 
other  States,  agreeing  to  accept  the  same  on  deposite  in 
the  proportion  aforesaid  :  And  provided  further ,  That  when 
said  money,  or  any  part  thereof,  shall  be  wanted  by  the  said 
Secretary,  to  meet  appropriations  by  law,  the  same  shall  be 
called  for,  in  rateable  proportions,  within  one  year,  as  nearly 
as  convenient!}*  ma}'  be,  from  the  different  States,  with  which 
the  same  is  deposited,  and  shall  not  be  called  for,  in  sums 
exceeding  ten  thousand  dollars,  from  any  one  State,  in  any 
one  month,  without  previous  notice  of  thirty  daj-s,  for  every 
additional  sum  of  twenty  thousand  dollars,  which  may  at  any 
time  be  required. 

SEC.  14.    And  be  it  further  enacted,  That  the  said  depos- 
ites  shall  be  made  with  the  said  States  in  the  following  pro- 


116      GOVERNMENT  STOCK  IN  THE  UNITED  STATES  BANK.     [1836. 

portions,  and  at  the  following  times,  to  wit :  one  quarter  part 
on  the  first  day  of  Januar}-,  eighteen  hundred  and  thirty- 
seven,  or  as  soon  thereafter  as  may  be  ;  one  quarter  part 
on  the  first  day  of  April,  one  quarter  part  on  the  first  da}'  of 
July,  and  one  quarter  part  on  the  first  day  of  October,  all  in 

the  same  year. 

[Approved,  June  23,  1836.    5  Statutes  at  Large,  52.] 

NOTE.  —  By  the  Act  of  July  5,  1838,  the  operation  of  the  last  clause 
of  section  5,  prohibiting  the  receipt  in  payments  to  the  United  States  of 
the  notes  of  any  bank  which  shall  issue  notes  of  less  than  five  dollars 
after  July  4,  1836,  is  suspended  until  October  1,  1838;  but  from  said 
last  mentioned  date  the  notes  of  no  bank  shall  be  so  received,  which 
shall  after  that  date  issue,  reissue,  or  pay  out  any  note  of  less  than  five 
dollars.  5  Statutes  at  Large,  255. 

1835-36,  Chap.  CXVI.  —  An  Act  authorizing  the  /Secretary 
of  the  Treasury  to  act  as  the  agent  of  the  United  States 
in  all  matters  relating  to  their  stock  in  the  Bank  of  the 
United  States. 

[Sections  1,  2,  and  3  make  it  the  duty  of  the  Secretary  of  the  Treas- 
ury to  act  as  agent  for  the  United  States  "  over  property  in  the  Bank  of 
the  United  States,  whether  the  same  be  standing  on  the  books  of  the 
bank  in  the  name  of  the  United  States,  or  of  the  Treasurer  of  the  United 
States,  for  the  use  of  the  Secretary  of  the  Navy,  for  the  payment  of 
navy  pensions  ; "  and  gives  the  Secretary  of  the  Treasury  authority  to 
vote  at  any  meeting  of  stockholders,  and  to  perform  any  other  act  as 
stockholder  on  behalf  of  the  United  States,  and  also  to  receive  and 
deposit  in  the  Treasury  any  dividends  made  of  the  capital  or  surplus 
profits  of  the  bank.  And  the  directors  of  the  bank  or  any  trustees 
thereof  are  required  to  furnish  the  Secretary  of  the  Treasury,  as  often 
as  he  may  require,  with  statements  of  the  capital  stock  of  the  corpora- 
tion undivided,  of  its  debts  due  beyond  the  same,  of  moneys  on  deposit, 
of  notes  outstanding,  and  of  specie  on  hand;  and  it  is  declared  that  the 
Secretary  shall  have  the  same  right  as  any  stockholder  to  examine  all 
accounts  of  the  bank  relating  to  such  statements.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  shall  be,  and  he  herebj-  is,  authorized  and  em- 
powered to  receive  the  capital  stock  belonging  to  the  United 
States,  in  the  late  Bank  of  the  United  States,  in  such  instal- 
ments, and  payable  at  such  times,  and  with  such  rates  of 
interest,  as  he  shall  see  fit  to  agree  to ;  and  also,  to  settle 


1837.]  SETTLEMENT   WITH   THE    BANK.  117 

and  adjust  the  claim  for  surplus  profits,  accruing  on  said 
capital  stock,  on  such  terms  as  he  may  think  proper,  and 
in  like  manner  to  receive  the  amount  thereof  in  such  instal- 
ments, and  payable  at  such  times,  and  with  such  rates  of 
interest,  as  he  may  agree  to. 

[Approved,  June  23,  1836.    5  Statutes  at  Large,  56.] 

1835-36,  Chap.  CCCLIII.  —  An  Act  in  addition  to  the  act 
entitled  "An  act  making  appropriations,  in  part,  for 
the  support  of  Government,  for  the  year  eighteen  hun- 
dred and  thirty-six,  and  for  other  purposes" 

SEC.  10.  And  be  it  further  enacted,  .  .  .  That  the  duties 
and  powers  of  the  commissioners  of  the  sinking  fund  are 
hereby  suspended  until  revived  by  law,  and  that  the  records 
of  the  commissioners  be  transferred  to  the  custody  of  the 
Secretary  of  the  Treasury,  who  is  hereby  authorized  and  di- 
rected to  pa}r  out  of  an}'  money  in  the  Treasury  not  otherwise 
appropriated  any  outstanding  debts  of  the  United  States  and 
the  interest  thereon. 

[Approved,  July  4,  1836.    5  Statutes  at  Large,  115.] 

1836-37,  Resolution  No.  5.  —  A  Resolution  authorizing  the 
Secretary  of  the  Treasury  to  receive  from  the  Sank  of 
the  United  States,  under  the  Pennsylvania  charter,  pay- 
ment for  the  stock  of  the  United  States,  in  the  late  Bank 
of  the  United  States. 

Resolved  by  the  Senate  and  House  of  Representatives,  . . . 
That  the  Secretary  of  the  Treasury  be  directed  to  accept  the 
terms  of  settlement  proposed  by  the  President  and  Directors 
of  the  Bank  of  the  United  States,  under  the  Pennsylvania 
charter,  in  their  memorial  to  Congress,  presented  at  the 
present  session,  for  the  paj-ment  to  the  United  States  of  the 
capital  stock  owned  by  them  in  the  late  Bank  of  the  United 
States,  and  the  final  adjustment  and  settlement  of  the  claims 
connected  with,  or  arising  out  of  the  same  ;  and  to  take  such 
obligation  for  the  payment  of  the  several  instalments  in  said 
proposed  terms  of  settlement  mentioned,  as  he  may  think 


118  DEPOSIT   WITH    STATES   POSTPONED.  [1837. 

proper :  Provided,  That  nothing  herein  contained  shall  pre- 
judice or  affect  in  any  way  the  question,  between  the  General 
Government  of  the  United  States,  and  the  late  Bank  of  the 
United  States,  respecting  the  claim  for  damages  on  account 
of  the  protest  of  the  bill  of  exchange,  drawn  on  the  French 

Government. 

[Approved,  March  3,  1837.    5  Statutes  at  Large,  200.] 

1837,  Chap.  I.  —  An  Act  to  postpone  the  fourth  instalment 
of  deposites  with  the  /State. 

Be  it  enacted,  .  .  .  That  the  transfer  of  the  fourth  instal- 
ment of  deposites  directed  to  be  made  with  the  States,  under 
the  thirteenth  section  of  the  act  of  June  twenty-third,  eighteen 
hundred  and  thirty-six,  be  and  the  same  is  hereby  postponed 
till  the  first  day  of  January,  one  thousand  eight  hundred  and 
thirty-nine  ;  Provided,  That  the  three  first  instalments  under 
the  said  act  shall  remain  on  deposite  with  the  States,  until 
otherwise  directed  by  Congress. 

[Approved,  October  2,  1837.    5  Statutes  at  Large,  201.] 

1837,  Chap.  II.  —  An  Act  to  authorize  the  issuing  of  Treas- 
ury Notes. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United  States 
is  hereby  authorized  to  cause  Treasury  notes  for  such  sum  or 
sums  as  the  exigencies  of  the  Government  may  require,  but 
not  exceeding,  in  the  whole  amount  of  notes  issued,  the  sum 
often  millions  of  dollars,  and  of  denominations  not  less  than 
fifty  dollars  for  any  one  note,  to  be  prepared,  signed,  and 
issued  in  the  manner  hereinafter  provided. 

SEC.  2.  And  be  it  further  enacted,  That  the  said  Treasury 
notes,  authorized  to  be  issued  by  the  first  section  of  this  act, 
shall  be  reimbursed  and  redeemed  by  the  United  States,  at 
the  Treasury  thereof,  after  the  expiration  of  one  year  from 
the  dates  of  the  said  notes  respectively  ;  from  which  said 
elates,  for  the  term  of  one  3'ear,  and  no  longer,  they  shall 
bear  such  interest  as  shall  be  expressed  upon  the  face  of  the 
said  notes ;  which  rate  of  interest  upon  each  several  issue  of 
the  said  notes  shall  be  fixed  by  the  Secretary  of  the  Treasury, 


1837.]  TREASURY  NOTE  ACT.  119 

by  and  with  the  advice  and  approbation  of  the  President ;  but 
shall  in  no  case  exceed  the  rate  of  interest  of  six  per  centum 
per  annum.  The  reimbursement  herein  provided  for  shall 
be  made  at  the  Treasury  of  the  United  States  to  the  holders 
of  the  said  notes  respectively,  upon  presentment,  and  shall 
include  the  principal  of  each  note,  and  the  interest  which  may 
be  due  thereon  at  the  time  of  payment.  For  this  reimburse- 
ment, at  the  time  and  times  herein  specified,  the  faith  of  the 
United  States  is  hereby  solemnly  pledged. 

[Section  3  provides  that  the  said  Treasury  notes  shall  be  signed  by  the 
Treasurer  and  countersigned  by  the  Register  of  the  Treasury,  and  that 
those  officers  shall  keep  separate  accounts  thereof,  as  checks  upon  each 
other.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  is  hereby  authorized,  with  the  approbation  of 
the  President  of  the  United  States,  to  cause  to  be  issued  such 
portion  of  the  said  Treasury  notes  as  the  President  ma}'  think 
expedient,  in  payment  of  debts  due  by  the  United  States  to 
such  public  creditors  or  other  persons  as  may  choose  to  re- 
ceive such  notes  in  payment,  as  aforesaid,  at  par.  And  the 
Secretary  of  the  Treasury  is  further  authorized,  with  the  ap- 
probation of  the  President  of  the  United  States,  to  borrow, 
from  time  to  time,  not  under  par,  such  sums  as  the  President 
may  think  expedient,  on  the  credit  of  such  notes. 

SEC.  5.  And  be  it  farther  enacted ',  That  the  said  Treasury 
notes  shall  be  transferable  by  delivery  and  assignment  en- 
dorsed thereon,  by  the  person  to  whose  order  the  same  shall, 
on  the  face  thereof,  have  been  made  payable. 

SEC.  6.  And  be  it  further  enacted,  That  the  said  Treasury 
notes  shall  be  received  in  payment  of  all  duties  and  taxes 
laid  by  the  authority  of  the  United  States,  of  all  public  lands 
sold  by  the  said  authority,  and  of  all  debts  to  the  United 
States,  of  "any  character  whatsoever,  which  may  be  due  and 
payable  at  the  time  when  said  Treasury  notes  'may  be  so 
offered  in  pa3'ment.  And  on  ever}'  such  payment,  credit  shall 
be  given  for  the  amount  of  the  principal  and  interest  which, 
on  the  day  of  such  payment,  may  be  due  on  the  note  or  notes 
thus  given  in  payment. 


120  BEIMBURSEMENT  OF  NOTES.  [1837. 

[Section  7  provides  for  the  accounts  to  be  kept  by  collectors  and  other 
receivers  of  tlie  public  moneys,  of  treasury  notes  received  by  them,  and 
for  the  charging  and  crediting  of  accrued  interest  on  such  notes  when 
paid  out  by  them.] 

SEC.  8.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  be,  and  he  is  hereby,  authorized  and  directed  to 
cause  to  be  reimbursed  and  paid  the  principal  and  interest  of 
the  Treasury  notes  which  may  be  issued  by  virtue  of  this  act, 
at  the  several  time  and  times  when  the  same,  according  to 
the  provisions  of  this  act,  should  be  thus  reimbursed  and  paid. 
And  the  said  Secretary  is  further  authorized  to  make  purchases 
of  the  said  notes,  at  par,  for  the  amount  of  the  principal  and 
interest  due  at  the  time  of  purchase  on  such  notes.  And  so 
much  of  any  unappropriated  mone}'  in  the  Treasury  as  may  be 
necessary  for  that  purpose,  is  hereby  appropriated,  for  paying 
the  principal  and  interest  of  said  notes. 

[Sections  9-11  provide  for  the  expenses  of  the  issue  and  for  the  pun- 
ishment of  counterfeiting  and  of  the  like  offences. 

Section  12  authorizes  the  Secretary  of  the  Treasury  to  make  rules  as 
to  the  safe-keeping,  return  and  cancelling  of  notes  received  by  any  offi- 
cers for  the  United  States,]  — 

Provided,  That  nothing  herein  contained  shall  be  so  con- 
strued as  to  authorize  the  Secretar}*  of  the  Treasury  to  reissue 
any  of  said  notes,  but  upon  the  return  of  the  said  notes  or 
an}'  of  them  to  the  Treasury,  the  same  shall  be  cancelled. 

SEC.  13.  And  be  it  further  enacted,  That  it  shall  be,  and 
hereby  is,  made  the  duty  of  the  Secretary  of  the  Treasury  to 
cause  a  statement  to  be  published  monthly,  of  the  amount  of 
all  Treasuiy  notes  issued  or  redeemed,  in  pursuance  of  the 
provisions  of  this  act ;  and  that  the  power  to  issue  Treasury 
notes  conferred  on  the  President  of  the  United  States  by  this 
act,  shall  cease  and  determine  on  the  thirty-first  day  of  De- 
cember, eighteen  hundred  and  thirt3'-eight. 

[Approved,  October  12, 1837.    6  Statutes  at  Large,  201.] 

1837,  Chap.  IX.  —  An  Act  for  adjusting  the  remaining 
claims  upon  the  late  deposite  banks. 

J3e  it  enacted,  .  .  .  That  the  Secreta^  of  the  Treasur}T  be, 
and  he  is  hereby,  authorized  to  continue  to  withdraw  the 


1837.]  ADJUSTMENT   WITH   DEPOSIT   BANKS.  121 

public  moneys  now  remaining  in  an}"  of  the  former  deposite 
banks,  in  a  manner  as  gradual  and  convenient  to  the  institu- 
tions as  shall  be  consistent  with  the  pecuniary  wants  of  the 
Government,  and  the  safety  of  the  funds  thus  to  be  drawn  ; 
and  that  no  further  interest  than  that  required  by  the  deposite 
act  of  the  twenty-third  of  June,  one  thousand  eight  hundred 
and  thirty-six,  under  which  those  deposites  were  made,  shall 
be  demanded  of  any  bank  which  has  met,  and  shall  hereafter 
meet  the  requisitions  of  the  Department.  This  provision  shall 
also  extend  to  such  public  moneys  as  may  remain  in  any  of 
the  said  banks,  whether  standing  to  the  credit  of  the  Treas- 
urer of  the  United  States,  or  of  any  disbursing  or  other  public 
officer  of  the  Government. 

SEC.  2.  And  be  it  further  enacted,  That  in  case  of  neglect 
or  refusal  by  an}*  of  the  said  banks  to  comply  with  the  requi- 
sitions of  the  Secretary  of  the  Treasuiy,  as  he  shall  make 
them,  in  conformity  with  the  first  section  of  this  act,  suits 
shall  be  instituted,  where  that  has  not  already  been  done,  to 
recover  the  amounts  due  'to  the  United  States,  unless  the  de- 
faulting bank  shall  forthwith  cause  to  be  executed  and  deliv- 
ered to  the  Secretarj-  of  the  Treasury  a  bond,  with  security 
to  be  approved  by  the  Solicitor  of  the  Treasury,  to  pay  to 
the  United  States  the  whole  moneys  due  from  it,  in  three  in- 
stalments :  the  first  to  be  paid  on  the  first  day  of  July  next, 
the  second  on  the  first  day  of  January,  eighteen  hundred  and 
thirty-nine,  and  the  remaining  instalment  on  the  first  day  of 
July,  eighteen  hundred  and  thirty-nine  ;  and  the  default  men- 
tioned in  this  act,  on  which  interest  is  to  commence  at  the 
rate  of  six  per  [centum  per  annum,]  shall  be  understood  to 
be  the  neglect  or  omission  of  said  banks,  or  any  of  them,  to 
answer  the  drafts  or  requisitions  of  the  Secretaiy  of  the  Treas- 
ury made  on  them  according  to  the  provisions  of  the  iirst  sec- 
tion of  this  act ;  and  interest  thereon  at  the  rate  of  six  per 
centum  per  annum,  from  the  time  of  default,  together  with  any 
damages  which  may  have  accrued  to  the  United  States  from  pro- 
tests of  drafts  drawn  upon  it,  or  from  any  other  consequence 
of  its  failure  to  fulfil  its  obligations  to  the  public  treasury. 

[Approved,  October  16,  1837.    5  Statutes  at  Large,  206.] 


122  TREASURY   NOTE   ACT.  [1838. 

1837,  Chap.  X.  —  An  Act  making  further  appropriations 
for  the  year  eighteen  hundred  and  thirty-seven. 

SEC.  3.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  be,  and  he  is  hereby  authorized,  to  arrange  and 
settle  any  of  the  outstanding  transfer  drafts  given  to  transfer 
moneys  to  the  States  under  the  act  of  twenty- third  of  June, 
1836,  and  which  have  not  been  paid  b\-  the  depositories  upon 
which  they  were  drawn,  or  otherwise  arranged  and  settled  by 
the  United  States,  by  receiving  such  drafts  at  par  in  payment 
of  any  debts  due  to  the  United  States,  without  any  allowance 
of  interest  for  the  time  the  drafts  have  been  outstanding  and 
unpaid,  or  any  other  allowance  for  interest  or  damages  of  any 
description. 

[Approved,  October  16,  1837.     5  Statutes  at  Large,  207.] 

1837-38,  Chap.  LXXXII.  —  An  Act  to  authorize  the  issuing 
of  Treasury  notes  to  meet  the  current  expenses  of  the 
Government. 

J3e  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury, 
with  the  approbation  of  the  President  of  the  United  States,  is 
hereby  authorized  to  cause  Treasury  notes  to  be  issued,  ac- 
cording to  the  provisions  of,  and  subject  to,  all  the  conditions, 
limitations,  and  restrictions  contained  in  an  act  entitled  "An 
act  to  authorize  the  issuing  of  Treasury  notes,"  approved  the 
Twelfth  day  of  October  last,  in  place  of  such  notes  as  have 
been,  or  may  be,  issued  under  the  authority  of  the  act  afore- 
said, and  which  have  been,  or  may  hereafter  be,  paid  into  the 
Treasury  and  cancelled. 

[Approved,  May  21,  1838.    5  Statutes  at  Large,  228.] 

1837-8,  Resolution  No.  4.  —  A  ^Resolution  relating  to  the 
public  revenue  and  dues  to  the  Government. 

^Resolved  by  the  /Senate  and  House  of  Representatives,  .  .  . 
That  it  shall  not  be  lawful  for  the  Secretai*y  of  the  Treasury 
to  make  or  to  continue  in  force,  any  general  order,  which 
shall  create  any  difference  between  the  different  branches 
of  revenue,  as  to  the  money  or  medium  of  payment,  in 


1838.]     BONDS    OF   UNITED   STATES   BANK   TO   BE    SOLD.  123 

which  debts  or  dues,  accruing  to  the  United  States,  may 

be  paid. 

[Approved,  May  31,  1838.    5  Statutes  at  Large,  310.] 


1837-38,  Chap.  CLXXXIV.  —  An  Act  to  authorize  the  sale 
of  certain  bonds  belonging  to  the  United  States. 

£e  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  be, 
and  he  is  hereby,  authorized  to  sell  upon  the  best  terms  he 
can  command  for  money  in  hand  in  the  markets  of  this  or  of 
any  foreign  country,  as  upon  inquiry  he  shall  find  most  for 
the  interest  of  the  United  States,  the  two  bonds  held  by  the 
United  States  against  "  the  president,  directors,  and  compan3r 
of  the  Bank  of  the  United  States,"  chartered  by  the  State  of 
Pennsylvania,  which  will  fall  due  in  the  month  of  September, 
in  the  year  one  thousand  eight  hundred  and  thirty-nine,  and 
one  thousand  eight  hundred  and  forty,  being  the  two  last  of 
four  several  bonds,  dated  on  the  tenth  day  of  May,  one  thou- 
sand eight  hundred  and  thirty-seven,  given  to  secure  the  pay- 
ment of  the  sum  of  one  million  nine  hundred  and  eighty-six 
thousand,  five  hundred  and  eighty-nine  dollars  and  four  cents 
each,  with  interest  upon  each  bond,  at  the  rate  of  six  per 
centum  per  annum,  from  the  third  day  of  March,  one  thou- 
sand eight  hundred  and  thirty-six  until  paid,  the  said  four 
bonds  having  been  received  by  the  United  States  as  security 
for  the  final  payment  of  the  stock  held  by  the  United  States, 
in  the  late  Bank  of  the  United  States,  chartered  by  Congress, 
and  to  execute  under  his  hand  and  the  seal  of  his  office,  to 
the  purchaser  or  purchasers  of  the  said  bonds,  suitable  and 
proper  assignments  to  transfer  to  the  said  purchaser  or  pur- 
chasers, his,  her,  or  their  representatives,  or  assigns,  all  the 
right,  title  and  interest  of  the  United  States,  of,  in,  and  to 
the  money  due  and  to  become  due  upon  the  bonds  sold  and 
assigned  in  pursuance  of  this  act :  Provided,  That  no  sale  of 
either  of  the  said  bonds  shall  be  made  upon  terms  less  fa- 
vorable to  the  United  States  than  the  par  value  of  the  bond 
sold,  at  the  time  of  sale,  calculated  according  to  the  rules 
for  estimating  the  par  value  of  securities  upon  which  interest 


124  NOTES    OF   EXPIRED    CORPORATIONS.  [1839. 

has  run  for  a  time,  but  which  securities  have  not  reached 
maturity. 

SEC.  2.  And  be  it  further  enacted,  That  all  money  received 
upon  the  sale  of  the  said  bonds,  shall  be  immediately  paid 
into  the  Treasury  of  the  United  States,  or  placed  to  the  credit 
of  the  Treasurer  thereof  in  some  proper  depository,  in  the 
same  manner  that  other  moneys,  received  for  dues  to  the  Gov- 
ernment, are  by  law  directed  to  be  paid  into  the  Treasury. 

[Approved,  July  7,  1838.     5  Statutes  at  Large,  296.] 

1837-38,  Chap.  CLXXXV.  —  An  Act  to  prevent  the  issuing 
and  circulation  of  the  bills,  notes  and  other  securities 
of  corporations  created  by  acts  of  Congress  which  have 
expired. 

[Section  1  makes  it  a  high  misdemeanor  for  any  director,  agent,  or 
trustee  of  any  corporation  created  by  act  of  Congress,  the  charter 
whereof  has  expired,  to  reissue  or  knowingly  put  in  circulation  any  bill, 
note,  check,  draft,  or  other  security  of  such  expired  corporation ;  and 
section  2  gives  to  the  circuit  courts  of  the  United  States  jurisdiction,  on 
bill  or  petition,  to  restrain  the  issue  or  transfer  of  such  bills,  notes,  and 
other  securities  when  in  the  possession  or  control  of  any  director,  agent, 
or  trustee  of  such  expired  corporation,  and  to  cause  such  of  said  bills, 
notes,  and  securities  as  have  been  redeemed  to  be  delivered  up  and 
cancelled.] 

[Approved,  July  7, 1838.    5  Statutes  at  Large,  297.] 

1838-39,  Chap.  XXXVII.  —  An  Act  to  revise  and  extend 
'•'•An  act  to  authorize  the  issuing  of  Treasury  notes 
to  meet  the  current  expenses  of  the  Government"  ap- 
proved the  twenty-first  of  May,  eighteen  hundred  and 
thirty -eight. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury, 
with  the  approbation  of  the  President  of  the  United  States, 
is  hereby  authorized  to  cause  to  be  issued  the  remainder  of 
the  Treasury  notes  authorized  to  be  issued  by  the  "act  to 
authorize  the  issuing  of  Treasury  notes  to  meet  the  cur- 
rent expenses  of  the  Government,"  approved  the  twenty-first 
day  of  May,  eighteen  hundred  and  thirty-eight,  according  to 
the  provisions  of  said  act,  at  any  time  prior  to  the  thirtieth 


1840.]  TREASURY  NOTE  ACT.  125 

day  of  June  next,  any  limitation  in  the  act  aforesaid  or  in 
the  act  "to  authorize  the  issuing  of  Treasury  notes,"  ap- 
proved the  twelfth  day  of  October,  eighteen  hundred  and 
thirty-seven,  to  the  contrary  notwithstanding. 

[Approved,  March  2,  1839.    6  Statutes  at  Large,  323.] 

1839-40,  Chap.  V. — An  Act  additional  to  the  act  on  the 
subject  of  Treasury  Notes. 

JBe  it  enacted,  .  .  .  That  the  regulations  and  provisions 
contained  in  the  act  passed  the  twelfth  day  of  October,  in 
the  year  one  thousand  eight  hundred  and  thirty-seven,  enti- 
tled "  An  act  to  authorize  the  issuing  of  Treasurj7  Notes," 
and  in  the  subsequent  acts  in  addition  thereto,  be,  and  the 
same  are  hereby,  renewed,  and  made  in  full  force,  excepting 
the  limitations  concerning  the  times  within  which  such  notes 
may  be  issued,  and  restricting  the  amount  thereof  as  here- 
after provided. 

SEC.  2.  And  be  it  further  enacted,  That  under  the  regu- 
lations and  provisions  contained  in  said  act,  Treasury  Notes 
may  be  issued  in  lieu  of  others  hereafter  or  heretofore  re- 
deemed, but  not  to  exceed  in  the  amount  of  notes  outstand- 
ing at  any  one  time,  the  aggregate  of  five  millions  of  dollars  ; 
and  to  be  redeemed  sooner  than  one  3~ear,  if  the  means  of  the 
Treasury  will  permit,  by  giving  notice  sixty  da}'s  of  those 
notes  which  the  Department  is  ready  to  redeem  ;  no  inter- 
est to  be  allowed  thereon  after  the  expiration  of  said  sixty 
da}'s. 

SEC.  3.  And  be  it  further  enacted,  That  this  act  shall 
continue  in  force  for  one  }"ear  and  no  longer. 

[Approved,  March  81,  1840.     5  Statutes  at  Large,  870.] 

1839-40,  Chap.  XLI.  —  An  Act  to  provide  for  the  collection, 
safe-keeping,  transfer,  and  disbursement  of  the  public 

revenue. 

Be  it  enacted,  .  .  .  That  there  shall  be  prepared  and 
provided,  within  the  new  Treasury  building  now  erecting  at 
the  seat  of  Government,  suitable  and  convenient  rooms  for 


126  INDEPENDENT  TREASURY  ACT.          [1840. 

the  use  of  the  Treasurer  of  the  United  States,  his  assistants 
and  clerks :  and  sufficient  and  secure  fire-proof  vaults  and 
safes  for  the  keeping  of  the  public  moneys  in  the  possession 
and  under  the  immediate  control  of  the  said  Treasurer; 
which  said  rooms,  vaults,  and  safes,  are  hereby  constituted 
and  declared  to  be,  the  Treasury  of  the  United  States.  And 
the  said  Treasurer  of  the  United  States  shall  keep  all  the 
public  moneys  which  shall  come  to  his  hands  in  the  Treasury 
of  the  United  States,  as  hereby  constituted,  until  the  same 
are  drawn  therefrom  according  to  law. 

[Section  2  provides  that  the  Mint  at  Philadelphia  and  the  Branch  Mint 
at  New  Orleans,  and  the  vaults  and  safes  thereof,  shall  be  places  of  de- 
posit, and  that  the  Treasurers  of  the  said  Mint  and  Branch  Mint,  respec- 
tively, shall  have  custody  of  all  public  moneys  deposited  therein  and 
perform  all  the  duties  prescribed  by  this  act  relating  to  sucli  moneys. 

Sections  3  and  4  require  that  in  the  custom-houses  of  New  York  and 
Boston,  and  at  the  cities  of  Charleston  and  St.  Louis,  suitable  rooms 
and  sufficient  and  secure  fire-proof  vaults  and  safes  shall  be  prepared, 
for  the  use  of  the  Receivers  General  of  public  money,  who  shall  have  the 
custody  of  all  public  moneys  deposited  therein  and  shall  perform  all  the 
duties  prescribed  by  this  act  relating  to  such  moneys.] 

SEC.  5.  And  be  it  further  enacted,  That  the  President 
shall  nominate,  and  by  and  with  the  advice  and  consent  of 
the  Senate,  appoint  four  officers,  to  be  denominated  "  re- 
ceivers-general of  public  money,"  which  said  officers  shall 
hold  their  respective  offices  for  the  term  of  four  years,  unless 
sooner  removed  therefroni ;  one  of  which  shall  be  located  at 
the  city  of  New  York,  in  the  State  of  New  York ;  one  other 
of  which  shall  be  located  at  the  city  of  Boston,  in  the  State 
of  Massachusetts  ;  one  other  of  which  shall  be  located  at  the 
city  of  Charleston,  in  the  State  of  South  Carolina ;  and  the 
remaining  one  of  which  shall  be  located  at  the  city  of  St. 
Louis,  in  the  State  of  Missouri ;  and  all  of  which  said  offi- 
cers shall  give  bonds  to  the  United  States,  with  sureties 
according  to  the  provisions  hereinafter  contained,  for  the 
faithful  discharge  of  the  duties  of  their  respective  offices. 

SEC.  6.  And  be  it  further  enacted,  That  the  Treasurer 
of  the  United  States,  the  treasurer  of  the  Mint  of  the  United 
States,  the  treasurers,  and  those  acting  as  such,  of  the  various 


1840.]         DUTIES    OF   RECEIVERS    OF   PUBLIC    MONEYS.  127 

Branch  Mints,  all  collectors  of  the  customs,  all  surveyors 
of  the  customs  acting  also  as  collectors,  all  receivers-general 
of  public  moneys,  all  receivers  of  public  mone}*s  at  the 
several  land  offices,  and  all  post-masters,  except  as  is  here- 
inafter particularly  provided,  be,  and  they  are  hereby,  re- 
quired to  keep  safeh',  without  loaning  or  using,  all  the  public 
money  collected  by  them,  or  otherwise  at  any  time  placed  in 
their  possession  and  custod}-,  till  the  same  is  ordered  by  the 
proper  department  or  officer  of  the  Government  to  be  trans- 
ferred or  paid  out ;  and  when  such  orders  for  transfer  or 
pa3rment  are  received,  faithfully  and  promptly  to  make  the 
same  as  directed,  and  to  do  and  perform  all  other  duties  as 
fiscal  agents  of  the  Government,  which  may  be  imposed  by 
this  or  any  other  acts  of  Congress,  or  by  any  regulation  of 
the  Treasuiy  Department,  made  in  conformity  to  law ;  and 
also  to  do  and  perform  all  acts  and  duties  required  by  law, 
or  by  direction  of  any  of  the  Executive  Departments  of  the 
Government,  as  agents  for  paying  pensions,  or  for  making 
any  other  disbursements  which  either  of  the  heads  of  those 
departments  may  be  required  by  law  to  make,  and  which  are 
of  a  character  to  be  made  by  the  depositaries  hereby  consti- 
tuted, consistently  with  the  other  official  duties  imposed  upon 
them. 

[Sections  7  and  8  provide  for  the  official  bonds  to  be  given  by  the 
Treasurer  of  the  United  States,  the  Treasurer  of  the  Mint,  the  Treas- 
urer of  the  Branch  Mint  at  New  Orleans,  the  Receivers  General  and  other 
depositaries,  and  for  the  renewal  and  increase  of  their  bonds  as  occasion 
may  require. 

By  sections  9,  10,  and  11,  it  is  required  that  all  collectors  and  receiv- 
ers of  public  moneys  shall,  as  often  as  may  be  directed,  pay  over  the 
moneys  collected  by  them,  those  in  the  District  of  Columbia  to  the 
Treasurer  of  the  United  States,  those  in  Philadelphia  and  New  Orleans 
to  the  Treasurers  of  the  Mints  respectively,  and  those  in  New  York, 
Boston,  Charleston,  and  St.  Louis  to  the  Receivers  General  in  their  re- 
spective cities,  and  it  is  made  the  duty  of  the  Secretary  of  the  Treasury 
and  Postmaster  General  to  direct  such  payments  to  be  made  as  often  as 
once  in  every  week.  Provision  is  made  for  the  transfer  of  money  from 
one  depositary  to  any  other,  at  the  direction  of  the  Secretary  of  the 
Treasury,  and  for  the  like  transfer  of  moneys  belonging  to  the  Post 
Office  Department  by  the  Postmaster  General;  and  every  depositary  is 


128  INDEPENDENT   TREASURY  ACT.  [1840. 

required  to  keep  his  account  of  money  belonging  to  that  Department 
separate  from  his  account  of  other  public  moneys.  And  all  moneys  in 
the  hands  of  any  depositary  are  to  be  considered  as  deposited  to  the 
credit  of  the  Treasurer  of  the  United  States  and  to  be,  at  all  times, 
subject  to  his  draft. 

By  sections  12  and  13,  provision  is  made  for  the  examination  of  the 
accounts  and  money  on  hand  of  the  several  depositaries  by  special 
agents  appointed  for  that  purpose,  and  further  for  a  like  examination, 
at  least  once  in  every  quarter,  by  public  officers  who  are  required  to  act 
as  a  check  upon  all  receivers,  collectors,  treasurers,  and  persons  acting 
as  such.] 

SEC.  15.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasur}'  shall,  with  as  much  promptitude  as  the  conven- 
ience of  the  public  business,  and  the  safet}'  of  the  public 
funds  will  permit,  withdraw  the  balances  remaining  with  the 
present  depositaries  of  the  public  mone}*s,  and  confine  the 
safe-keeping,  transfer,  and  disbursement  of  those  moneys  to 
the  depositaries  established  by  this  act. 

[By  sections  17  all  officers  entrusted  with  public  moneys,  except  those 
connected  with  the  Post  Office  Department,  are  required  to  keep  an  ac- 
curate account  of  all  receipts  and  payments,  showing  the  kind  of  cur- 
rency received  or  paid;  and  it  is  declared  to  be  embezzlement  and 
felony  for  any  such  officer  or  for  any  officer  of  the  Post  Office  Depart- 
ment to  convert  to  his  own  use,  or  to  use  by  investment,  or  to  loan  any 
portion  of  the  public  moneys  entrusted  to  him  ] 

SEC.  19.  And  be  it  further  enacted,  That  from  and  after 
the  thirtieth  da}"  of  June,  which  will  be  in  the  }-ear  one  thou- 
sand eight  hundred  and  forty,  the  resolution  of  Congress  of 
the  thirtieth  day  of  April,  in  the  year  one  thousand  eight 
hundred  and  sixteen,  so  far  as  it  authorizes  the  receipt  in 
payment  of  duties,  taxes,  sales  of  public  lands,  debts  and 
sums  of  mone}%  accruing  or  becoming  payable  to  the  United 
States,  to  be  collected  and  paid  in  the  notes  of  specie-pa}-- 
ing  banks,  shall  be  so  modified  as  that  one  fourth  part  of  all 
such  duties,  taxes,  sales  of  public  lands,  debts,  and  sums  of 
money  accruing  or  becoming  due  to  the  United  States,  shall 
be  collected  in  the  legal  currency  of  the  United  States  ;  and 
from  and  after  the  thirtieth  day  of  June,  which  will  be  in 
the  year  one  thousand  eight  hundred  and  forty-one,  one  other 
fourth  part  of  all  such  duties,  taxes,  sales  of  public  lands, 


1840.]  CURRENCY   TO   BE   RECEIVED   AND   PAID.  129 

debts,  and  sums  of  money,  shall  he  so  collected ;  and  that 
from  and  after  the  thirtieth  day  of  June,  which  will  be  in  the 
3*ear  one  thousand  eight  hundred  and  forty-two,  one  other 
fourth  part  of  all  such  duties,  taxes,  sales  of  public  lands, 
debts  and  sums  of  money,  shall  be  so  collected ;  and  from 
and  after  the  thirtieth  day  of  June,  which  will  be  in  the  }'ear 
one  thousand  eight  hundred  and  forty-three,  the  remaining 
fourth  part  of  the  said  duties,  taxes,  sales  of  public  lands, 
debts,  and  sums  of  mone}',  shall  be  also  collected  in  the  legal 
currency  of  the  United  States ;  and  from  and  after  the  last 
mentioned  day,  all  sums  accruing,  or  becoming  payable  to 
the  United  States,  for  duties,  taxes,  sales  of  public  lands, 
or  other  debts,  and  also  all  sums  due  for  postages,  or  other- 
wise, to  the  General  Post  Office  Department,  shall  be  paid  in 
gold  and  silver  only. 

SEC.  20.  And  be  it  further  enacted,  That  from  and  after 
the  thirtieth  day  of  June,  which  will  be  in  the  year  one  thou- 
sand eight  hundred  and  forty-three,  every  officer  or  agent 
engaged  in  making  disbursements  on  account  of  the  United 
States,  or  of  the  General  Post  Office,  shall  make  all  pa}'ments 
in  gold  and  silver  coin  only  ;  and  an}r  receiving  or  disbursing 
officer,  or  agent,  who  shall  neglect,  evade,  or  violate,  the  pro- 
visions of  this  and  the  last  preceding  section  of  this  act, 
shall,  by  the  Secretary  of  the  Treasury,  be  immediately  re- 
ported to  the  President  of  the  United  States,  with  the  facts 
of  such  neglect,  evasion,  or  violation,  and  also  to  Congress, 
if  in  session,  and,  if  not  in  session,  at  the  commencement 
of  its  session  next  after  the  violation  takes  place. 

[Section  21  forbids  any  disbursing  officer  to  make  any  exchange  of 
funds  other  than  an  exchange  for  gold  and  silver,  and  requires  every 
such  officer  to  make  his  payments  in  the  currency  furnished  him  when 
legally  receivable  under  the  provisions  of  this  act,  "  unless  ...  lie  can 
exchange  the  means  in  his  hands  for  gold  and  silver  at  par,  and  so  as 
to  facilitate  his  payments,  or  otherwise  accommodate  the  public  service 
and  promote  the  circulation  of  a  metallic  currency."] 

SEC.  22.  And  be  it  further  enacted,  That  it  shall  not  be 
lawful  for  the  Secretary  of  the  Treasury  to  make  or  continue 
in  force,  any  general  order,  which  shall  create  any  difference 


130  TREASURY   NOTE    ACT.  [1841. 

between  the  different  branches  of  revenue,  as  to  the  funds  or 
medium  of  payment,  in  which  debts  or  dues  accruing  to  the 
United  States  may  be  paid. 

[Sections  23  and  25  make  it  the  duty  of  the  Secretary  of  the  Treasury 
to  make  regulations  prescribing  the  time  within  which  drafts  on  the  de- 
positaries shall  be  presented  for  payment,  but  require  him  "to  guard, 
as  far  as  may  be,  against  those  drafts  being  used  or  thrown  into  circula- 
tion, as  a  paper  currency,  or  medium  of  exchange."  The  Treasurer  of 
the  United  States,  however,  is  authorized  to  receive  payments  for  public 
lands  in  advance,  and  to  give  therefor  his  receipts,  which  shall  be  receiv- 
able for  public  lands  in  the  same  manner  as  the  currency  authorized  by 
law,  provided,  that  such  receipts  shall- not  be  negotiable  or  transferable 
by  delivery  or  assignment,  but  shall  be  in  all  cases  presented  in  payment 
by  or  for  the  person  named  therein.] 

[Approved,  July  4,  1840.    5  Statutes  at  Large,  385.] 

1840-41,  Chap.  V.  —  An  Act  to  authorize  the  issuing  of 
Treasury  Notes. 

£e  it  enacted,  .  .  .  That  the  President  of  the  United 
States  is  hereby  authorized  to  cause  Treasury  notes  to  be 
issued  for  such  sum  or  sums  as  the  exigencies  of  the  Gov- 
ernment ma}'  require ;  but  not  exceeding  the  sum  of  five 
millions  of  dollars  of  this  emission,  outstanding  at  any  one 
time,  to  be  reimbursed  in  the  last  quarters  of  the  year,  if  the 
condition  of  the  Treasury  will  permit  it,  and  to  be  issued 
under  the  limitations  and  other  provisions,  contained  in  the 
act,  entitled  "An  act  to  authorize  the  issuing  of  Treasury, 
notes,"  approved  the  twelfth  da}-  of  October,  one  thousand 
eight  hundred  and  thirty-seven,  and  as  modified  by  an  act, 
entitled  "  An  act  additional  to  the  act  on  the  subject  of 
Treasury  notes,"  approved  the  thirty-first  day  of  March, 
one  thousand  eight  hundred  and  forty,  except  that  this  law 
shall  expire  in  one  year  from  and  after  its  passage :  Pro- 
vided, That  in  case  the  Treasury  notes  outstanding  and  un- 
redeemed, issued  under  former  laws  of  Congress,  added  to 
the  amount  of  such  notes  issued  under  this  act,  and  actually 
expended  or  issued  to  meet  pa)'ments  due  and  payable  be- 
fore the  fourth  day  of  March  next,  shall,  on  the  fourth  day 
of  March,  ne;xt,  exceed  the  sum  of  five  millions  of  dollars, 


1841.]  TWELVE   MILLION   LOAN.  131 

then  the  President  of  the  United  States  shall  be,  and  he  is 
hereby,  authorized  to  issue,  by  virtue  of  the  provisions  of 
this  act,  such  further  amount  of  the  said  notes  as  will  make 
the  whole  amount  issued  under  this  act,  and  applicable  to 
payments  falling  due  after  the  third  day  of  March  next,  the 
full  sum  of  five  millions  of  dollars. 

[Approved,  February  15,  1841.    5  Statutes  at  Large,  411.J 

1841,  Chap.  III.  —  An  Act  authorizing  a  loan  not  exceeding 
the  sum  of  twelve  millions  of  dollars. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United  States 
is  hereby  authorized,  at  any  time  within  one  year  from  the 
passage  of  this  act,  to  borrow,  on  the  credit  of  the  United 
States,  a  sum  not  exceeding  twelve  millions  of  dollars,  or  so 
much  thereof  as  in  his  opinion  the  exigencies  of  the  Govern- 
ment may  require,  at  a  rate  of  interest,  payable  quarterly  or 
semi-annualty,  not  exceeding  six  per  centum  per  annum,  which 
loan  shall  be  made  reimbursable  either  at  the  will  of  the  Sec- 
retary of  the  Treasury,  after  six  months'  notice,  or  at  any 
time  after  three  years  from  the  first  day  of  Januar}'  next ;  and 
said  money  so  borrowed  shall  be  applied,  in  addition  to  the 
money  now  in  the  Treasury,  or  which  may  be  received  therein 
from  other  sources,  to  the  payment  and  redemption  of  the 
Treasury  notes  heretofore  authorized,  which  are  or  may  be 
outstanding  and  unpaid,  and  to  defray  any  of  the  public  ex- 
penses which  have  been  heretofore  or  which  may  be  author- 
ized by  law,  which  stock  shall  be  transferable  only  on  the 
books  of  the  Treasury. 

[Sections  2  and  3  authorize  the  preparation  and  sale  of  certificates  of 
the  stock,  "provided,  That  no  stock  be  sold  below  par,"  and  the  employ- 
ment of  agents  for  the  negotiation  of  the  same,  with  a  commission  not 
exceeding  one-tenth  of  one  per  cent,  on  the  amount  so  negotiated.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  is  hereby  authorized  to  purchase,  at  any  time 
before  the  period  herein  limited  for  the  redemption  of  stock 
hereby  authorized,  such  portion  thereof  as  the  funds  of  the 
Government  may  admit  of,  after  meeting  all  the  demands  on 


132       REPEAL  OF  INDEPENDENT  TREASURY  ACT.    [1842. 

the  Treasury,  and  any  surplus  in  the  Treasury  is  hereby  ap- 
propriated to  that  object. 

SEC.  5.  And  be  it  further  enacted,  That  the  faith  of  the 
United  States  be,  and  is  hereby,  pledged  for  the  punctual 
pa3'meut  of  the  interest  and  redemption  of  said  stock. 

[Approved,  July  21,  1841.    5  Statutes  at  Large,  438.] 

1841,  Chap.  VII.  —  An  Act  to  repeal  the  act  entitled  "An 
act  to  provide  for  the  collection,  safe-keeping,  transfer 
and  disbursement  of  the  public  revenue"  and  to  provide 

for  the  punishment  of  embezzlers  of  public  money,  and 

for  other  purposes. 

Be  it  enacted,  .  .  .  That  the  act  entitled  "An  act  to  pro- 
vide for  the  collection,  safe-keeping,  transfer  and  disburse- 
ment of  the  public  revenue,"  approved  on  the  fourth  day  of 
July,  A.  D.,  one  thousand  eight  hundred  and  forty,  be,  and  the 
same  is  hereby,  repealed  :  Provided,  always, 

[That  offenders  against  section  17  of  the  repealed  act  may  be  prose- 
cuted, and  that  all  liabilities  arising  upon  bonds  or  otherwise  under  the 
said  act  shall  remain  unimpaired. 

Section  2  makes  it  felony  for  any  officer  entrusted  with  public  moneys, 
or  connected  witli  the  Post  Office  Department,  to  convert  to  his  own  use, 
or  to  use  by  investment,  or  to  loan  any  portion  of  the  public  moneys  en- 
trusted to  him,  and  the  neglect  to  pay  over  or  transfer  such  moneys  on 
legal  requirement  is  declared  to  be  prima  facie  evidence  of  conversion.] 

SEC.  3.  And  be  it  further  enacted,  That  the  act  entitled 
"An  act  to  regulate  the  deposits  of  the  public  money,"  ap- 
proved on  the  twenty-third  day  of  June,  eighteen  hundred  and 
thirty-six,  excepting  the  thirteenth  and  fourteenth  sections 
thereof,  be  and  the  same  hereby  is  repealed. 

[Section  4  repeals  so  much  of  the  act  of  April  14,  1836,  as  forbids  the 
offer  of  bank  notes  of  less  denomination  than  ten  dollars,  and  after 
March  3,  1837,  of  less  than  twenty  dollars,  in  payments  by  the  United 
States  or  the  Post  Office  Department.  See  page  11Q.] 

[Approved,  August  13,  1841.    5  Statutes  at  Large,  439.] 

1841-42,    Chap.    II.  —  An  Act  to   authorize  an  issue    of 
Treasury  notes. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United  States 
is  hereby  authorized  to  cause  Treasury  notes  to  be  issued  for 


1842.]          TREASURY  NOTES  AND  LOAN.  133 

such  sum  or  sums  as  the  exigencies  of  the  Government  may 
require,  and  in  place  of  such  of  the  same  as  may  be  redeemed 
to  cause  others  to  be  issued,  but  not  exceeding  the  sum  of 
five  millions  of  dollars  of  this  emission  outstanding  at  any  one 
time,  and  to  be  issued  under  the  limitations  and  other  provi- 
sions contained  in  the  act  entitled  "An  act  to  authorize  the 
issuing  of  Treasury  notes,"  approved  the  twelfth  of  October, 
one  thousand  eight  hundred  and  thirty-seven,  except  that  the 
authority  hereby  given  to  issue  Treasury  notes  shall  expire  at 
the  end  of  one  year  from  the  passage  of  this  act. 

[Approved,  January  31,  1842.     5  Statutes  at  Large,  469.] 

1841-42,  Chap.  XXVI.  —  An  Act  for  the  extension  of  the 
loan  of  eighteen  hundred  and  forty -one,  and  for  an  ad- 
dition of  Jive  millions  of  dollars  thereto;  and  for  allow- 
ing interest  on  Treasury  notes  due. 

Be  it  enacted,  .  .  .  That  the  time  limited  b}T  the  first  sec- 
tion of  the  act  of  Congress,  entitled  "An  act  authorizing  a 
loan  not  exceeding  the  sum  of  twelve  millions  of  dollars,"  ap- 
proved July  twenty-first,  eighteen  hundred  and  forty-one,  for 
obtaining  said  loan,  shall  be,  and  the  same  is  hereby,  extended 
for  one  }'ear  from  the  passage  of  this  act. 

SEC.  2.  And  be  it  farther  enacted,  That  so  much  of  said 
loan  as  may  be  obtained  after  the  passage  of  this  act  shall  be 
made  reimbursable,  as  shall  be  agreed  upon  and  determined 
at  the  time  of  issuing  said  stock,  either  at  the  will  of  the  Sec-, 
retary  of  the  Treasury,  after  six  months'  notice,  or  at  any 
time  not  exceeding  twenty  years  from  the  first  da}'  of  January 
next. 

SEC.  3.  And  be  it  further  enacted,  That  the  certificates 
hereafter  to  be  issued  for  said  loan  ma}r,  when  required,  be  in 
such  form  as  shall  be  prescribed  by  the  Secretary  of  the 
Treasury,  so  that  the  stock  may  be  transferable  by  delivery 
of  the  certificate,  instead  of  being  assignable  on  the  books  of 
the  Treasury. 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  be,  and  he  hereby  is,  authorized  to  dispose  of 


134  PLEDGE    OF   DUTIES.  [1842. 

the  stock  hereafter  to  be  issued,  or  any  part  thereof,  at  its 
par  value,  but  no  part  thereof  shall  be  disposed  of  under  par 
until  the  same  has  been  advertised  a  reasonable  time,  and 
proposals  for  subscription  to  said  loan  invited.  And  the 
said  Secretary  is  hereby  authorized  to  accept  such  proposals, 
if  he  deem  it  for  the  interest  of  the  United  States  so  to  do,  as 
shall  offer  the  highest  price  for  said  stock  or  any  part  thereof ; 
or  to  appoint  an  agent  or  agents  as  provided  in  the  third  sec- 
tion of  the  act,  approved  July  twenty-first,  eighteen  hundred 
and  forty-one,  before  recited,  to  negotiate  the  same :  Pro- 
vided, That  no  stocks  shall  be  disposed  of  at  a  lower  rate 
than  the  highest  price  offered  in  said  proposals. 

SEC.  5.  And  be  it  further  enacted,  That  the  moneys  aris- 
ing from  duties  on  goods,  wares,  and  merchandise,  which  may 
be  imported  into  the  United  States,  or  so  much  thereof  as  shall 
be  equal  to  the  payment,  from  time  to  time,  of  the  interest, 
and  to  the  ultimate  redemption  of  the  principal  of  the  said 
stock,  be,  and  the  same  are  hereb}-,  pledged  for  the  payment 
and  redemption  of  the  stock  hereafter  to  be  issued  under  and 
by  virtue  of  this  act  and  the  said  act  of  July  twenty-first, 
eighteen  hundred  and  forty-one,  hereby  amended  ;  and  so  much 
thereof  as  ma}'  be  necessary  to  pay  the  interest  on  said  stock, 
and  redeem  the  same  when  due,  is  hereby  appropriated  to  that 
object,  to  be  first  applied  b}T  the  Secretary  of  the  Treasurj-  to 
such  payments  and  redemption. 

SEC.  6.  And  be  it  further  enacted,  That  it  shall  be  the  duty 
of  the  Secretary  of  the  Treasury  to  report  to  Congress,  at  the 
commencement  of  the  next  session,  the  amount  of  money  bor- 
rowed under  this  act  and  the  act  hereby  amended,  and  of 
whom  and  upon  what  terms  it  shall  have  been  obtained,  with 
an  abstract  or  brief  statement  of  all  the  proposals  submitted 
for  the  same,  distinguishing  between  those  accepted  and  those 
rejected  ;  and  a  detailed  statement  of  the  expense  of  making 
such  loans. 

.  SEC.  7.  And  be  it  further  enacted,  That  all  the  provisions 
of  the  said  act,  not  hereby  modified  or  changed,  shall  be  and 
remain  in  force,  and  appty  to  this  act. 

SEC.  8.   And  be  it  further  enacted,  That  the  President  of 


1842.]  INTEREST   ON  TREASURY   NOTES.  135 

the  United  States  is  hereby  authorized  to  borrow  an  additional 
sum,  not  exceeding  the  sum  of  five  millions  of  dollars,  if,  in 
his  opinion,  the  exigencies  of  the  Government  may  require 
the  same  ;  which  additional  loan  shall  be  made  within  the 
time  and  according  to  the  provisions  of  said  act,  as  modified 
by  this. 

SEC.  9.  And  be  it  further  enacted,  That  all  Treasury  notes 
heretofore  issued  under  the  act  entitled  "An  act  to  authorize 
the  issuing  of  Treasury  notes,"  approved  the  twelfth  day  of 
October,  eighteen  hundred  and  thirty-seven,  and  the  acts  sub- 
sequent thereto,  and  now  outstanding  and  unredeemed,  or 
which  ma3r  hereafter  be  issued  under  and  by  virtue  of  the 
same,  shall,  if  due  and  unpaid  before  the  fifth  day  of  March, 
eighteen  hundred  and  forty-two,  bear  interest  at  the  rate  of 
six  per  cent  per  annum  from  that  day  ;  and  when  they -may 
become  due  hereafter,  or  ma}r  have  become  due  since  the  said 
fifth  day  of  March,  eighteen  hundred  and  forty -two,  shall  bear 
interest  from  the  day  of  their  so  becoming  due,  at  the  rate  of 
six  per  cent,  per  annum,  until  they  shall  be  respectively  re- 
deemed :  Provided,  That  such  interest  shall  cease  at  the 
expiration  of  sixty  days'  notice,  to  be  given  at  any  time,  by 
the  Secretary  of  the  Treasury  in  one  or  more  of  the  principal 
papers  published  at  the  seat  of  Government,  of  a  readiness 
to  redeem  the  same.  And  the  said  interest  shall  be  payable 
semi-annually  at  the  Treasury  of  the  United  States,  on  the 
first  days  of  January  and  July  in  every  year. 

[Approved,  April  15,  1842*.    5  Statutes  at  Large,  473.] 

1841-42,  Chap.  CCLXXXVII.  —  An  Act  to  limit  the  sale  of 
the  public  stock  to  par,  and  to  authorize  the  issue  of 
Treasury  notes,  in  lieu  thereof,  to  a  certain  amount. 

[Section  1  provides  that  no  stock  authorized  under  the  Act  of  July  21, 
1811,  and  the  amendatory  Act  of  April  15,  1842,  shall  hereafter  be  sold 
below  par;  and  the  Secretary  of  the  Treasury  is  authorized  to  issue 
treasury  notes  in  lieu  of  so  much  thereof  as  cannot  be  negotiated  at  or 
above  par,  to  an  amount  not  exceeding  six  millions  of  dollars.] 

SEC.  2.  And  be  it  further  enacted,  That  the  Treasury 
notes  authorized  to  be  issued  by  virtue  of  this  act  shall  not 


136  REISSUE    OF   TREASURY   NOTES.  [1843. 

be  issued  after  the  time  limited  by  said  last  mentioned  act, 
being  the  fifteenth  day  of  April,  eighteen  hundred  and  forty- 
three,  for  making  said  loan,  and  they  shall  be  issued  under 
the  provisions  and  limitations  contained  in  the  act  entitled 
"An  act  to  authorize  the  issuing  of  Treasury  notes,"  approved 
the  twelfth  day  of  October,  eighteen  hundred  and  thirty-seven, 
and  as  modified  by  the  act  entitled  "An  act  additional  to  the 
act  on  the  subject  of  Treasuiy  notes,"  approved  March  thirty- 
h'rst,  eighteen  hundred  and  forty :  Provided,  That  the  notes 
authorized  to  be  issued  b}-  virtue  of  this  act  may,  when  re- 
deemed, be  reissued,  or  new  notes  issued  in  lieu  of  such  as 
may  be  redeemed  within  the  time  above  prescribed  for  issuing 
the  same,  provided  that  not  more  than  six  millions  in  amount 
shall  be  outstanding  at  any  one  time  under  the  authority  of 
this  act. 

SEC.  3.  And  be  it  further  enacted,  That  nothing  in  the  act 
contained,  entitled  an  act  authorizing  the  loan,  above  referred 
to,  and  an  act  amendatory  of  the  same,  shall  be  so  construed 
as  to  authorize  the  issue  of  certificates  of  stock,  for  debts  now 
due  or  to  become  due  by  the  United  States,  for  any  other  pur- 
pose than  a  bona  fide  loan  to  the  Government  according  to 
the  original  intention  of  that  law,  and  that  no  certificate  for 
an}^  loan  shall  be  issued  for  a  less  sum  than  one  hundred 

dollars. 

[Approved,  August  31,  1842.     5  Statutes  at  Large,  581.] 

1842-43,  Chap.  LXXXI,  —  An  Act  authorizing  the  reissue  of 
treasury  notes  and  for  other  purposes. 

Be  it  enacted,  .  .  .  That  when  any  outstanding  treasury 
notes,  issued  in  pursuance  of  the  act  of  thirty-first  August, 
one  thousand  eight  hundred  and  fort3'-two,  entitled  "An  act 
to  limit  the  sale  of  public  stock  to  par,  and  to  authorize  the 
issue  of  treasury  notes,  in  lieu  thereof,  to  a  certain  amount," 
or  any  previous  act  of  Congress,  shall,  after  the  passage  of 
this  act,  be  redeemed  at  any  time  before  the  first  day  of  July, 
one  thousand  eight  hundred  and  forty-four,  the  Secretary  of 
the  Treasury,  should  the  wants  of  the  public  service  require, 
may  cause  other  notes,  to  the  same  amount,  to  be  issued  in 


1846.]  TREASURY    NOTES   AND   LOAN.  137 

place  of  such  as  may  be  redeemed,  under  the  limitations  and 
other  provisions  of  the  respective  acts  by  which  said  notes 
were  originally  authorized  and  issued. 

SEC.  2.  And  be  it  further  enacted,  That,  after  maturity  of 
the  treasury  notes  issued  under  the  said  act  of  thirty-first  Au- 
gust, or  of  this  act,  interest  may  be  paid  thereon,  in  the  same 
manner  as  on  treasury  notes  authorized  previous  to  the  fif- 
teenth April  last,  under  the  ninth  section  of  the  act  approved 
on  that  da}*,  entitled  "An  act  for  the  extension  of  the  loan 
of  one  thousand  eight  hundred  and  forty-one,  and  for  an 
addition  of  five  millions  of  dollars  thereto,  and  for  allowing 
interest  on  treasury  notes  due." 

SEC.  3.  And  be  it  further  enacted,  That,  in  lieu  of  issuing 
the  treasmy  notes  in  the  manner  authorized  by  the  first  sec- 
tion of  this  act,  the  President,  if  in  his  opinion  it  shall  be  for 
the  interest  of  the  United  States  so  to  do,  may  cause  any  of 
said  notes  now  outstanding,  to  be  redeemed  and  cancelled  as 
they  become  due,  if  the  Secretary  of  the  Treasury  cannot  re- 
deem them  out  of  the  funds  in  the  treasuiy,  by  an  issue  of 
stock  of  the  United  States,  for  the  amount  thus  redeemed,  in 
the  same  form,  for  the  same  time,  and  under  the  same  restric- 
tions, limitations,  and  provisions,  as  are  contained  in  an  act 
approved  April  fifteen,  eighteen  hundred  and  forty-two,  en- 
titled "An  act  for  the  extension  of  the  loan  of  eighteen  hun- 
dred and  forty-one,  and  for  an  addition  of  five  millions  of 
dollars  thereto,  and  for  allowing  interest  on  treasury  notes 
due,"  except  that  no  commissions  shall  be  allowed  or  paid  for 
the  negotiation  of  such  business ;  and  except  also  that  said 
stock  so  to  be  issued,  shall  be  redeemable  at  a  period  not 
longer  than  ten  years  from  the  issue  thereof. 

[Approved,  March  3, 1843.    6  Statutes  at  Large,  614.] 

1845-46,  Chap.  LXIV.  —  An  Act  to  authorize  an  Issue  of 
Treasury  JVbtes  and  a  Loan. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United 
States  is  hereby  authorized  to  cause  treasury  notes  to  be 
issued  for  such  sum  or  sums  as  the  exigencies  of  the  govern- 


138  INDEPENDENT   TREASURY   ACT.  [1846. 

ment  may  require ;  and,  in  place  of  such  of  the  same  as  may 
be  redeemed,  to  cause  others  to  be  issued  ;  but  not  exceed- 
ing the  sum  of  ten  millions  of  dollars  of  this  emission  out- 
standing at  any  one  time,  and  to  be  issued  under  the  limitations 
and  other  provisions  contained  in  the  act  entitled  ' '  An  Act 
to  authorize  the  Issue  of  Treasury  Notes,"  approved  the 
twelfth  of  October,  one  thousand  eight  hundred  and  thirty- 
seven,  except  that  the  authority  hereby  given  to  issue  treasury 
notes  shall  expire  at  the  end  of  one  year  from  the  passage 
of  this  act. 

[Section  2  provides  that  the  President,  instead  of  issuing  the  whole 
amount  of  treasury  notes  thus  authorized,  may  borrow  by  the  issue  of 
stock  of  the  United  States,  in  the  form  and  under  the  provisions  pre- 
scribed by  the  Act  of  April  15,  1842,  on  page  133.  Provided,  That  the 
sum  thus  borrowed,  together  with  the  treasury  notes  issued,  shall  not 
exceed  ten  millions  of  dollars,  that  the  stock  created  shall  be  redeemable 
at  a  period  not  longer  than  ten  years  from  its  issue,  and  that  no  commis- 
sion shall  be  paid  for  the  negotiation  of  this  loan  ] 

SEC.  3.  And  be  it  further  enacted,  That  the  treasury  notes 
and  the  stock  issued  under  the  provisions  of  this  act  shall 
not  bear  a  higher  rate  of  interest  than  six  per  centum  per 
annum,  and  no  part  thereof  shall  be  disposed  of  at  less 

than  par. 

[Approved,  July  22,  1846.    9  Statutes  at  Large,  39.] 

1845-46,  Chap.  XC.  —  An  Act  to  provide  for  the  better  Or- 
ganization of  the  Treasury,  and  for  the  Collection, 
Safe-keeping,  Transfer ,  and  Disbursement  of  the 
public  Revenue. 

WHEREAS,  by  the  fourth  section  of  the  act  entitled  "An  Act  to 
establish  the  Treasury  Department,"  approved  September  two, 
seventeen  hundred  and  eighty-nine,  it  was  provided  that  it  should 
be  the  duty  of  the  treasurer  to  receive  and  keep  the  moneys  of 
the  United  States,  and  to  disburse  the  same  upon  warrants  drawn 
by  the  Secretary  of  the  Treasury,  countersigned  by  the  comp- 
troller, and  recorded  by  the  register,  and  not  otherwise ;  and 
whereas  it  is  found  necessary  to  make  further  provisions  to  ena- 
ble the  treasurer  the  better  to  carry  into  effect  the  intent  of  the 
said  section  in  relation  to  the  receiving  and  disbursing  the 
moneys  of  the  United  States:  Therefore  — 


1846.]  ASSISTANT   TREASURERS.  139 

Be  it  enacted,  .  .  .  That  the  rooms  prepared  and  pro- 
vided in  the  new  treasury  building  at  the  seat  of  government 
for  the  use  of  the  treasurer  of  the  United  States,  his  assist- 
ants and  clerks,  and  occupied  by  them,  and  also  the  fire- 
proof vaults  and  safes  erected  in  said  rooms  for  the  keeping 
of  the  public  moneys  in  the  possession  and  under  the  imme- 
diate control  of  said  treasurer,  and  such  other  apartments 
as  are  provided  for  in  this  act  as  places  of  deposit  of  the 
public  money,  are  hereby  constituted  and  declared  to  be  the 
treasury  of  the  United  States.  And  all  moneys  paid  into 
the  same  shall  be  subject  to  the  draft  of  the  treasurer,  drawn 
agreeably  to  appropriations  made  by  law. 

[Sections  2,  3,  and  4  establish  as  "  places  of  deposit "  the  Mint  at 
Philadelphia  and  the  Branch  Mint  at  New  Orleans,  and  the  vaults  and 
safes  thereof;  and  the  Treasurers  of  said  Mint  and  Branch  Mint,  respec- 
tively, are  made  Assistant  Treasurers  under  the  provisions  of  this  act,  and 
are  to  have  custody  of  all  public  moneys  deposited  therein,  and  to  per- 
form all  the  duties  required  as  to  the  receipt,  safe-keeping,  transfer,  and 
disbursement  of  the  same.  The  rooms,  safes,  and  vaults,  prepared  in  the 
custom-houses  of  New  York  and  Boston  and  in  the  cities  of  Charleston 
and  St.  Louis,  for  the  use  of  Receivers  General  under  the  act  of  July  4, 
1840,  are  declared  to  be  for  the  use  of  the  Assistant  Treasurers  now  to  be 
appointed  at  those  places  respectively;  and  the  said  Assistant  Treasurers 
are  to  have  custody  of  said  rooms,  vaults,  and  safes,  and  of  public  moneys 
therein  deposited,  and  to  perform  all  duties  required  in  relation  to  such 
moneys.  By  subsequent  acts  the  Mints  at  San  Francisco,  Carson  City, 
and  Denver,  and  the  Assay  Office  at  Boise  City  are  declared  to  be  places 
of  deposit,  and  the  superintendents  thereof  are  made  Assistant  Treasurers. 
See  Revised  Statutes,  sections  3592,  3594.] 

SEC.  5.  And  be  it  further  enacted,  That  the  President 
shall  nominate,  and  by  and  with  the  advice  and  consent  of 
the  Senate  appoint,  four  officers  to  be  denominated  "  assist- 
ant-treasurers of  the  United  States,"  which  said  officers  shall 
hold  their  respective  offices  for  the  term  of  four  years,  unless 
sooner  removed  therefrom ;  one  of  which  shall  be  located  at 
the  city  of  New  York,  in  the  State  of  New  York  ;  one  other 
of  which  shall  be  located  at  the  city  of  Boston,  in  the  State 
of  Massachusetts  ;  one  other  of  which  shall  be  located  at  the 
city  of  Charleston,  in  the  State  of  South  Carolina ;  and  one 
other  at  St.  Louis,  in  the  State  of  Missouri.  And  all  of 


140  INDEPENDENT  TREASURY  ACT.          [1846. 

which  said  officers  shall  give  bonds  to  the  United  States, 
with  sureties,  according  to  the  provisions  hereinafter  con- 
tained, for  the  faithful  discharge  of  the  duties  of  their  re- 
spective offices. 

[Assistant  Treasurers  are  provided  for,  by  subsequent  acts,  at  Balti- 
more, Cincinnati,  and  Chicago.  Revised  Statutes,  section  3595.  By  the 
Coinage  act  of  February  12, 1873,  section  65,  the  Assistant  Treasurers  in 
Philadelphia,  Nevv  Orleans,  and  San  Francisco  ceased  to  be  Treasurers  of 
the  Mints  in  those  cities  respectively.  17  Statutes  at  Large,  424.  By  the 
act  of  August  15,  187C,  the  office  of  Assistant  Treasurer  at  Charleston  is 
discontinued.  19  Statutes  at  Large,  155.] 

SEC.  6.  And  be  it  further  enacted,  That  the  treasurer  of 
the  United  States,  the  treasurer  of  the  mint  of  the  United 
States,  the  treasurers,  and  those  acting  as  such,  of  the  vari- 
ous branch  mints,  all  collectors  of  the  customs,  all  surveyors 
of  the  customs  acting  also  as  collectors,  all  assistant  treasur- 
ers, all  receivers  of  public  moneys  at  the  several  land  offices, 
all  postmasters,  and  all  public  officers  of  whatsoever  charac- 
ter, be,  and  they  are  hereb}',  required  to  keep  safely,  without 
loaning,  using,  depositing  in  banks,  or  exchanging  for  other 
funds  than  as  allowed  by  this  act,  all  the  public  money  col- 
lected by  them,  or  otherwise  at  any  time  placed  in  their  pos- 
session and  custod}',  till  the  same  is  ordered,  by  the  proper 
department  or  officer  of  the  government,  to  be  transferred 
or  paid  out ;  and  when  such  orders  for  transfer  or  paj'ment 
are  received,  faithfully  and  promptly  to  make  the  same  as 
directed.  .  .  . 

[The  same  officers  are  also  required  to  perform  all  duties  imposed  upon 
them  by  law  as  fiscal  agents  of  the  Government,  and  as  agents  for  paying 
pensions,  or  for  making  any  other  disbursements  which  can  be  made  by 
them  consistently  with  their  other  duties.  But  by  the  Act  of  February  5, 
1867,  the  payment  of  pensions  was  transferred  to  pension  agents  in  the 
several  States.  14  Statutes  at  Large,  391. 

Sections  7  and  8  provide  for  the  official  bonds  to  be  given  by  the  Treas- 
urer of  the  United  States,  the  Treasurer  of  the  Mint,  the  Treasurer  of  the 
Branch  Mint  at  New  Orleans,  the  Assistant  Treasurers  and  other  deposi- 
taries, and  for  the  renewal  and  increase  of  their  bonds  as  occasion  may 
require. 

Sections  9-12  repeat  without  material  change  the  provisions  of  sections 
9-13  of  the  Act  of  July  4, 1840,  substituting,  however,  the  Assistant  Treas- 
urers for  the  Receivers  General  provided  for  by  that  act. 


1846.]         GOLD   AND    SILVER   THE   LEGAL   CURRENCY.  141 

By  section  14  the  Secretary  of  the  Treasury  is  authorized  to  transfer, 
at  his  discretion,  balances  remaining  with  any  of  the  present  depositaries 
to  any  other  of  them,  and  also  to  draw  upon  such  balances  in  making 
payments  as  he  may  find  advisable,  but  is  not  to  transfer  such  balances 
to  the  depositaries  constituted  by  this  act  before  January  1,  1847. 

Section  16  requires  all  officers  entrusted  with  public  moneys,  except 
those  connected  with  the  Post  Office  Department,  to  keep  an  accurate 
account  of  all  receipts  and  payments  ;  and  if  any  such  officer  or  any  offi- 
cer of  the  Post  Office  Department  shall  convert  to  his  own  use,  or  use  by 
investment,  or  loan,  or  deposit  in  any  bank,  or  exchange  except  as  herein 
allowed  any  portion  of  the  public  moneys  entrusted  to  him,  the  act  is  to 
be  deemed  an  embezzlement,  and  is  declared  to  be  felony  ;  and  any  failure 
to  pay  over  or. produce  such  moneys  is  to  be  taken  as  priina  facie  evidence 
of  such  embezzlement.] 

And  whereas,  by  the  thirtieth  section  of  the  act  entitled  "  An  Act 
to  regulate  the  Collection  of  Duties  imposed  by  Law  on  the  Ton- 
nage of  Ships  or  Vessels,  and  on  Goods,  Wares,  and  Merchandises, 
imported  into  the  United  States,"  approved  July  thirty-one,  sev- 
enteen hundred  and  eighty-nine,  it  was  provided  that  all  fees  and 
duties  collected  by  virtue  of  that  act  should  be  received  in  gold  and 
silver  coin  only;  and  whereas,  also,  by  the  fifth  section  of  the  act 
approved  May  ten,  eighteen  hundred,  entitled  "  An  Act  to  amend 
the  Act  entitled  '  An  Act  providing  for  the  Sale  of  the  Lands 
of  the  United  States  in  the  Territory  North-west  of  the  Ohio, 
and  above  the  Mouth  of  Kentucky  River,'  "  it  was  provided  that 
payment  for  the  said  lands  shall  be  made  by  all  purchasers  in 
specie,  or  in  evidences  of  the  public  debt;  and  whereas,  experi- 
ence has  proved  that  said  provisions  ought  to  be  revived  and  en- 
forced, according  to  the  true  and  wise  intent  of  the  constitution 
of  the  United  States.  — 

SEC.  18.  Be  it  further  enacted.  That  on  the  first  clay 
of  January,  in  the  year  one  thousand  eight  hundred  and  forty- 
seven,  and  thereafter,  all  duties,  taxes,  sales  of  public  lands, 
debts,  and  sums  of  money  accruing  or  becoming  due  to  the 
United  States,  and  also  all  sums  due  for  postages  or  other- 
wise, to  the  general  post-office  department,  shall  be  paid  in 
gold  and  silver  coin  only,  or  in  treasury  notes  issued  under 
the  authority  of  the  United  States :  Provided,  That  the  Sec- 
retary of  the  Treasury  shall  publish,  monthly,  in  two  newspa- 
pers at  the  cit}'  of  Washington,  the  amount  of  specie  at  the 
several  places  of  deposit,  the  amount  of  treasury  notes  or 


142  INDEPENDENT  TREASURY  ACT.  [1847. 

drafts  issued,  and  the  amount  outstanding  on  the  last  da}"  of 
each  month. 

SEC.  19.  And  be  it  further  enacted,  That  on  the  first  day 
of  April,  one  thousand  eight  hundred  and  forty-seven,  and 
thereafter,  every  officer  or  agent  engaged  in  making  disburse- 
ments on  account  of  the  United  States,  or  of  the  general  post- 
office,  shall  make  all  payments  in  gold  and  silver  coin,  or  in 
treasury  notes,  if  the  creditor  agree  to  receive  said  notes  in 
payment ;  and  any  receiving  or  disbursing  officer  or  agent  who 
shall  neglect,  evade,  or  violate,  the  provisions  of  this  and  the 
last  preceding  section  of  this  act,  shall,  by  the  Secretar}-  of 
the  Treasury,  be  immediately  reported  to  the  President  of 
the  United  States,  with  the  facts  of  such  neglect,  evasion,  or 
violation ;  and  also  to  Congress,  if  in  session  j  and  if  not  in 
session,  at  the  commencement  of  its  session  next  after  the 
violation  takes  place. 

[Section  20  forbids  any  disbursing  officer  to  make  any  exchange  of 
funds  other  than  an  exchange  for  gold  and  silver,  and  requires  every  such 
officer,  when  the  means  of  disbursement  are  furnished  to  him  in  gold  and 
silver,  to  make  his  payments  in  the  same ;  and  when  the  means  are  fur- 
nished in  drafts  to  make  his  payments  in  the  money  received  therefor, 
unless  he  can  exchange  the  means  in  his  hands  for  gold  and  silver  at  par. 
But  disbursing  officers  having  credits  in  the  banks  may  be  allowed  until 
January  1,  1847,  to  check  on  the  same,  Allowing  the  public  creditors  to 
receive  their  pay  from  the  banks  either  in  specie  or  in  bank  notes. 

Section  21  makes  it  the  duty  of  the  Secretary  of  the  Treasury  to  make 
regulations  prescribing  the  time  within  which  drafts  on  the  depositaries 
shall  be  presented  for  payment,  but  requires  him  "to  guard,  as  far  as 
may  be,  against  those  drafts  being  used  or  thrown  into  circulation  as  a 
paper  currency  or  medium  of  exchange."  And  no  officer  shall  sell,  for  a 
premium,  any  treasury  note,  draft,  warrant,  or  other  public  security,  not 
his  private  property,  or  sell  the  proceeds  of  any  such  note  or  security  in 
his  hands  for  disbursement,  without  charging  such  premium  in  his  ac- 
counts to  the  credit  of  the  United  States,  under  penalty  of  dismissal.] 

[Approved,  August  6,  1846.    9  Statutes  at  Large,  59.] 

1846-47,   Chap.   V.  —  An  Act    authorizing    the   Issue  of 
Treasury  Notes,  a  Loan,  and  for  other  purposes. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United 
States  is  hereby  authorized  to  cause  treasury  notes,  for  such 


1847.]  TREASURY  NOTE  ACT.  143 

sum  or  sums  as  the  exigencies  of  the  government  may  re- 
quire, but  not  exceeding,  in  the  whole  amount  of  notes 
issued,  the  sum  of  twentj'-three  millions  of  dollars,  and  of 
denominations  not  less  than  fift}-  dollars  for  any  one  note,  to 
be  prepared,  signed,  and  issued,  in  the  manner  hereinafter 
provided. 

SEC.  2.  And  be  it  further  enacted,  That  the  said  treasury 
notes  authorized  to  be  issued  by  the  first  section  of  this  act, 
shall  be  reimbursed  and  redeemed  by  the  United  States,  at 
the  treasury  thereof,  after  the  expiration  of  one  year  or  two 
years  from  the  dates  of  the  said  notes  respectively ;  from 
which  said  dates  they  shall  bear  such  interest,  until  they 
shall  be  respectively  redeemed,  as  shall  be  expressed  upon 
the  face  of  the  said  notes ;  which  rate  of  interest  upon  each 
several  issue  of  the  said  notes  shall  be  fixed  by  the  Secre- 
tary of  the  Treasury,  by  and  with  the  advice  and  approba- 
tion of  the  President ;  but  shall  in  no  case  exceed  the  rate 
of  interest  of  six  per  centum  per  annum  :  Provided,  That 
after  the  maturity  of  an}*  of  the  said  notes,  such  interest 
shall  cease  at  the  expiration  of  sixt}-  days'  notice,  to  be  given 
at  an}*-  time  by  the  Secretary  of  the  Treasury,  in  one  or  more 
of  the  principal  papers  published  at  the  seat  of  government, 
of  a  readiness  to  redeem  the  same.  The  reimbursement 
herein  provided  for  shall  be  made  at  the  treasury  of  the 
United  States  to  the  holders  of  the  said  notes  respectively, 
upon  presentment,  and  shall  include  the  principal  of  each, 
note,  and  the  interest  which  may  be  due  thereon  at  the  time 
of  paj'ment.  For  this  reimbursement,  at  the  time  and  times 
herein  specified,-  the  faith  of  the  United  States  is  hereby 
solemnly  pledged. 

[Section  3,  providing  for  the  signing  of  notes,  follows  closely  the  lan- 
guage of  section  3,  of  the  Act  of  October  12,  1837.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary 
of  the  Treasury  is  hereb}'  authorized,  with  the  approbation 
of  the  President  of  the  United  States,  to  cause  to  be  issued 
such  portion  of  the  said  treasury  notes  as  the  President  may 
think  expedient  in  payment  of  debts  due  by  the  United 


144       RECEIPT  OF  NOTES  BY  THE  GOVERNMENT.    [1847. 

States,  to  such  public  creditors,  or  other  persons,  as  may 
choose  to  receive  such  notes  in  paj-ment,  as  aforesaid,  at 
par.  And  the  Secretary  of  the  Treasury  is  further  author- 
ized, with  the  approbation  of  the  President  of  the  United 
States,  to  borrow  from  time  to  time  such  sums  as  the  Presi- 
dent may  think  expedient  on  the  credit  of  such  notes  :  Pro- 
vided, however,  That  no  treasury  notes  shall  be  pledged, 
h}-pothecated,  sold,  or  disposed  of  in  any  wise  for  any  pur- 
pose whatever,  directly  or  indirectly,  for  any  sum  less  than 
the  amount  of  such  notes,  including  the  principal  and  inter- 
est thereon  when  disposed  of. 

SEC.  5.  And  be  it  further  enacted,  That  the  said  treasury 
notes  shall  be  transferable,  by  delivery  and  assignment  en- 
dorsed thereon,  by  the  person  to  whose  order  the  same  shall 
on  the  face  thereof  have  been  made  paj-able. 

SEC.  6.  And  be  it  further  enacted,  That  the  said  treasury 
notes  shall  be  received  in  pa3*ment  of  all  duties  and  taxes 
laid  by  the  authority  of  the  United  States,  of  all  public  lauds 
sold  by  the  said  authority,  and  of  all  debts  to  the  United 
States  of  any  character  whatsoever,  which  may  be  due  and 
payable  at  the  time  when  said  treasury  notes  may  be  so 
offered  in  payment ;  and  on  every  such  payment  credit  shall 
be  given  for  the  amount  of  the  principal  and  interest  which, 
on  the  day  of  such  payment,  may  be  due  on  the  note  or  notes 
thus  given  in  payment. 

SEC.  7.  And  be  it  farther  enacted^  That  even*  collector, 
receiver  of  public  moneys,  or  other  officer  or  agent  of  the 
United  States,  shall,  on  the  receipt  of  any  treasury  notes  in 
payment  for  the  government,  take  from  the  holder  thereof  a 
receipt  on  the  back  of  each  of  said  notes,  stating  distinctly 
the  date,  and  the  amount  received ;  and  shall  keep,  accord- 
ing to  such  forms  as  shall  be  prescribed  by  the  Secretan*  of 
the  Treasuiy,  entries  of  whom  received,  the  number,  date, 
and  respective  amounts  of  principal  and  interest  of  each  and 
every  treasury  note  thus  received ;  and  on  delivering  the 
same  to  the  treasury  shall  receive  credit  for  the  amount 
paid  as  prescribed  by  the  last  section :  Provided,  no  error 
shall  appear. 


184G.]  NOTES  TO  BE  FUNDED.  145 

[Sections  8-10,  providing  for  the  reimbursement  or  purchase  of  the 
notes,  and  for  the  punishment  of  counterfeiting  and  the  like  offences,  fol- 
low the  language  of  sections  9-11  of  the  Act  of  October  12,  1837. 

Section  11,  authorizing  the  Secretary  of  the  Treasury  to  make  rules 
for  the  safe-keeping,  return,  and  cancelling  of  notes  received  by  any 
officers  for  the  United  States,  is  nearly  identical  with  section  12  of  the 
same  act,  but  omits  the  provision  forbidding  the  reissue  of  notes.] 

SEC.  12.  And  be  it  further  enacted.  That,  in  lieu  of  the 
notes  authorized  by  this  act  which  may  be  redeemed,  other 
notes  may  be  issued :  Provided,  however,  The  amount  of 
such  notes  outstanding,  together  with  the  stock  issued  by 
virtue  of  the  thirteenth  and  sixteenth  sections  of  this  act, 
shall  not  exceed  the  sum  of  twenty-three  millions  of  dollars. 

SEC.  13.  And  be  it  further  enacted,  That  it  shall  be  law- 
ful for  the  holders  of  the  aforesaid  treasury  notes  to  present 
them,  at  any  time,  to  the  treasury  of  the  United  States,  or 
to  any  assistant  treasurer,  or  to  such  collectors  of  the  cus- 
toms and  receivers  of  public  moneys  as  may  be  designated 
by  the  Secretary  of  the  Treasury ;  and  the  holders  of  the 
said  treasury  notes  shall  be  entitled  to  receive  therefor  the 
amount  of  the  principal  of  the  said  notes  in  a  certificate  or 
certificates  of  funded  stock,  bearing  interest  at  six  per  centum 
per  annum,  from  the  date  of  such  presentment  of  said  treas- 
ury notes,  and  for  the  interest,  shall  be  paid  in  money ;  and 
the  stock  thus  to  be  issued  shall  be  transferable  on  the 
books  of  the  treasury :  Provided,  however,  and  be  it 
further  enacted,  That  it  shall  be  lawful  for  the  United 
States  to  reimburse  the  stock  thus  created,  at  any  time  after 
the  last  day  of  December,  one  thousand  eight  hundred  and 
sixty-seven. 

SEC.  14.  And  be  it  further  enacted,  That  it  shall  and 
may  be  lawful  for  the  holder  of  any  treasury  notes  issued, 
or  authorized  to  be  issued,  under  this  act  or  an}T  laws  hereto- 
fore passed,  to  convert  the  same  into  certificates  of  funded 
stock,  upon  the  same  terms  and  in  the  same  manner  herein- 
before provided  in  relation  to  the  treasury  notes  authorized 
by  the  first  section  of  this  act. 

SEC.  15.  And  be  it  further  enacted,  That  the  authority  to 
issue  treasury  notes  authorized  b}'  the  "  Act  authorizing  an 

10 


146          SALES  OF  PUBLIC  LANDS  PLEDGED.       [1847. 

Issue  of  Treasury  Notes  and  a  Loan,"  approved  July  twenty- 
second,  one  thousand  eight  hundred  and  forty-six,  be,  and 
the  sam,e  is  hereby,  extended  to  the  same  period  fixed  for 
the  treasury  notes  authorized  by  this  act,  and  upon  the  same 
terms  and  conditions  herein  specified :  Provided,  That  the 
treasury  notes  authorized  by  this  section  shall  not  exceed 
five  million  of  dollars. 

[Sections  16-18  authorize  the  President,  in  lieu  of  treasury  notes,  to 
issue  stock  of  the  United  States,  bearing  interest  at  a  rate  not  exceeding 
six  per  cent.,  and  redeemable  after  December  81,  1867 :  provided,  that  the 
whole  amount  of  treasury  notes  and  of  stock  together  shall  not  exceed 
twenty -three  millions  of  dollars,  and  "  provided  further,  That  no  stock  shall 
be  issued  at  a  less  rate  than  par."] 

SEC.  19.  And  be  it  further  enacted,  That,  for  the  paj'ment 
of  the  stock  which  may  be  created  under  the  provisions  of 
this  act  the  sales  of  the  public  lands  are  hereby  pledged,  and 
it  is  hereby  made  the  duty  of  the  Secretary  of  the  Treasury  to 
use  and  apply  all  moneys  which  may  be  received  into  the 
treasuiy  for  the  sales  of  the  public  lands  after  the  first  day  of 
January,  eighteen  hundred  and  forty-eight,  first,  to  pay  the 
interest  on  all  stocks  issued  by  virtue  of  this  act ;  and,  sec- 
ondly, to  use  the  balance  of  said  receipts,  after  paj'ing  the 
interest  aforesaid,  in  the  purchase  of  said  stocks  at  their 
market  value :  Provided,  No  more  than  par  shall  be  paid 
for  said  stocks. 

[The  proviso  to  the  above  section  was  repealed  by  section  3  of  the 
civil  and  diplomatic  appropriation  act  of  March  3,  1849.  9  Statutes  at 
Large,  309.] 

SEC.  21.  And  be  it  further  enacted,  That  it  shall  be,  and 
hereb}-  is,  made  the  duty  of  the  Secretary  of  the  Treasury  to 
cause  a  statement  to  be  published  monthlj7  of  the  amount  of 
all  treasury  notes  issued  or  redeemed  in  pursuance  of  the  pro- 
visions of  this  act ;  and  that  the  power  to  issue  treasuiy  notes 
conferred  on  the  President  of  the  United  States  by  this  act 
shall  cease  and  determine  six  months  after  the  exchange  and 
ratification  of  a  treaty  of  peace  with  the  Republic  of  Mexico. 

[Section  22  makes  it  the  duty  of  the  Secretary  of  the  Treasury  to  re- 


1848.]  SIXTEEN   MILLION   LOAN.  147 

port  to  Congress  at  the  beginning  of  every  session  the  amount  of  treas- 
ury notes  issued,  redeemed,  purchased,  or  reissued,  during  the  preceding 
year.] 

[Approved,  January  28,  1847.    9  Statutes  at  Large,  118.] 

1847-48.  Chap.  XXVI.  —  An  Act  to  authorize  a  Loan  not  to 
exceed  the  Sum  of  Sixteen  Millions  of  Dollars. 

[Section  1  authorizes  the  President  to  borrow  on  the  credit  of  the 
United  States,  within  one  year  from  the  passage  of  this  act,  a  sum  not 
exceeding  sixteen  millions  of  dollars,  at  a  rate  of  interest  not  exceeding 
six  per  cent.,  and  reimbursable  at  any  time  after  twenty  years  from 
July  1,  1848.] 

SEC.  2.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  be,  and  he  is  hereby  authorized,  with  the  con- 
sent of  the  President  of  the  United  States,  to  cause  to  be 
prepared  certificates  of  stock,  which  shall  be  signed  by  the 
Register  of  the  Treasury  and  sealed  with  the  seal  of  the 
Treasury  Department,  for  the  sum  to  be  borrowed  as  afore- 
said, or  any  part  thereof,  bearing  an  interest  not  to  exceed 
six  per  centum  per  annum,  and  transferable  and  reimbursable 
as  aforesaid,  and  to  cause  said  certificates  of  stock  to  be  sold  :  f 
Provided,  That  no  part  of  said  stock  be  sold  below  par :  And 
provided,  also,  That,  whenever  required  so  to  do,  the  Secre- 
tary of  the  Treasury  shall  cause  to  be  attached  to  any  certifi- 
cate or  certificates  to  be  issued  under  this  act,  coupons  of 
interest  ;  and  any  certificate  having  such  coupons  of  inter- 
est attached  to  it,  may  be  transferable  by  delivery  of  the  cer- 
tificate, instead  of  being  assignable  on  the  books  of  the 
treasury ;  but  no  certificate  of  stock  shall  be  issued  for  a 
less  amount  than  fifty  dollars. 

[By  section  3  the  Secretary  of  the  Treasury  is  directed,  before  dispos- 
ing of  this  stock,  to  advertise  for  sealed  proposals,  to  be  handed  in  after 
not  less  than  twenty  nor  more  than  sixty  days,  and  in  the  advertisement 
to  state  the  amount  required  and  the  conditions  fixed  for  its  payment  into 
the  Treasury. 

Section  4  pledges  the  faith  of  the  United  States  for  the  provision  of 
sufficient  revenues  to  secure  the  payment  of  the  interest  and  redemption 
of  the  principal.] 

SEC.  5.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  be,  and  he  is  hereby,  authorized  to  purchase,  at 


148  TEXAS    INDEMNITY    STOCK.  [1850. 

any  time  before  the  period  herein  limited  for  the  redemption 
of  the  stock  hereby  created,  such  portion  thereof  at  the  mar- 
ket price,  not  below  par,  as  the  funds  of  the  government  may 
admit  of,  after  meeting  all  the  demands  on  the  treasury  ;  and 
anjr  surplus  that  hereafter  ma}'  be  in  the  treasury  is  hereby 
appropriated  to  that  object. 

[Section  6  provides  for  a  report  to  be  made  to  Congress  of  all  transac- 
tions under  this  act,  in  language  identical  with  that  of  section  6  of  the 
Act  of  April  15,  1842,  on  page  134.] 

[Approved,  Marcli  31,  1848.    9  Statutes  at  Large,  217.] 

1849-50,  Chap.  XLIX.  —  An  Act  proposing  to  the  State  of 
Texas  the  Establishment  of  her  Northern  and  'Western 
Boundaries,  the  Relinquishment  by  the  said  State  of  all 
Territory  claimed  by  her  exterior  to  said  Boundaries, 
and  of  all  her  Claims  upon  the  United  States,  and  to 
establish  a  territorial  Government  for  New  Mexico. 

[SEC.  1.]  FOURTH.  The  United  States,  in  consideration 
of  said  establishment  of  boundaries,  cession  of  claim  to  ter- 
•ritory,  and  relinquishment  of  claims,  will  pa}-  to  the  State  of 
Texas  the  sum  of  ten  millions  of  dollars  in  a  stock  bearing 
five  per  cent,  interest,  and  redeemable  at  the  end  of  fourteen 
years,  the  interest  payable  half-yearly  at  the  treasury  of  the 
United  States. 

FIFTH.  Immediately  after  the  President  of  the  United  States 
shall  have  been  furnished  with  an  authentic  copy  of  the  act  of 
the  general  assembly  of  Texas  accepting  these  propositions, 
he  shall  cause  the  stock  to  be  issued  in  favor  of  the  State  of 
Texas,  as  provided  for  in  the  fourth  article  of  this  agreement : 
Provided,  also,  That  no  more  than  five  millions  of  said  stock 
shall  be  issued  until  the  creditors  of  the  State  holding  bonds 
and  other  certificates  of  stock  of  Texas  for  which  duties  on 
imports  were  specially  pledged,  shall  first  file  at  the  treasury 
of  the  United  States  releases  of  all  claim  against  the  United 
States  for  or  on  account  of  said  bonds  or  certificates  in  such 
form  as  shall  be  prescribed  by  the  Secretary  of  the  Treasury 
and  approved  by  the  President  of  the  United  States :  .  .  . 

[Approved,  September  9,  1850.     9  Statutes  at  Large,  446.] 


1858.]  TREASURY  NOTE  ACT.  149 

1852-53,  Chap.  XCVII.  —  An  Act  making  appropriations 
for  the  Civil  and  Diplomatic  Expenses  of  Government 
for  the  year  ending  the  thirtieth  of  June,  eighteen  hun- 
dred and  fifty -four. 

SEC.  9.  And  be  it  further  enacted,  That  the  Secretary 
of  the  Treasurj7  be  and  he  is  hereby  authorized  to  purchase 
at  the  current  market  price  any  of  the  outstanding  stocks  of 
the  United  States  as  he  ma}7  think  most  advisable,  from  any 
surplus  funds  in  the  Treasury :  Provided,  That  the  balance 
in  the  Treasury  shall  not  at  any  time  be  reduced  below  six 
millions  of  dollars. 

[Approved,  March  3,  1853.     10  Statutes  at  Llrge,  212-] 

1857-58,   Chap.   I.  —  An  Act    to    authorize  the  Issue   of 
Treasury  JVbtes. 

He  it  enacted,  .  .  .  That  the  President  of  the  United 
States  is  hereby  authorized  to  cause  treasury  notes  for  such 
sum  or  sums  as  the  exigencies  of  the  public  service  may 
require,  but  not  to  exceed,  at  anj1  time,  the  amount  of 
twent}r  millions  of  dollars,  and  of  denominations  not  less 
than  one  hundred  dollars  for  any  such  note,  to  be  prepared, 
signed,  and  issued  in  the  manner  hereinafter  provided. 

SEC.  2.  And  be  it  further  enacted,  That  such  treasury 
notes  shall  be  paid  and  redeemed  by  the  United  States  at 
the  treasury  thereof  after  the  expiration  of  one  year  from 
the  dates  of  said  notes,  from  which  dates,  until  the}*  shall 
be  respectively  paid  and  redeemed,  the}"  shall  bear  such  rate 
of  interest  as  shall  be  expressed  in  said  notes,  which  rate  of 
interest  upon  the  first  issue,  which  shall  not  exceed  six  mil- 
lions of  dollars  of  such  notes  shall  be  fixed  by  the  Secretary 
of  the  Treasury,  with  the  approbation  of  the  President,  but 
shall  in  no  case  exceed  the  rate  of  six  per  centum  per  annum. 
The  residue  shall  be  issued  in  whole  or  in  part,  after  public 
advertisement  of  not  less  than  thirty  days,  as  the  Secretary 
of  the  Treasur}7  may  direct,  by  exchanging  them  at  their 
par  value  for  specie  to  the  bidder  or  bidders  who  shall  agree 
to  make  such  exchange  at  the  lowest  rate  of  interest,  not 


150  TREASURY   NOTES   TO    BE    REISSUED.  [1858. 

exceeding  six  per  centum,  upon  the  said  notes :  Provided^ 
That  after  the  maturity  of  any  of  said  notes,  interest  thereon 
shall  cease  at  the  expiration  of  sixty  days'  notice  of  readi- 
ness to  pay  and  redeem  the  same,  which  may  at  any  time  or 
times  be  given  by  the  Secretary  of  the  Treasury  in  one  or 
more  newspapers  published  at  the  seat  of  government.  The 
payment  or  redemption  of  said  notes  herein  provided  shall 
be  made  to  the  lawful  holders  thereof,  respectively,  upon 
presentment  at  the  treasury,  and  shall  include  the  principal 
of  each  note  and  the  interest  which  shall  be  due  thereon. 
And  for  such  payment  and  redemption,  at  the  time  or  times 
herein  specified,  the  faith  of  the  United  States  is  hereby  sol- 
emnly pledged. 

[Section  3  provides  for  the  signing  of  the  notes,  and  the  accounts  to 
be  kept  of  their  preparation,  redemption,  and  cancellation. 

Sections  4-7,  providing  for  the  issue,  transfer,  receipt,  and  payment 
of  the  notes,  follow  the  language  of  sections  4-7  of  the  Act  of  January 
28,  1847,  on  page  143. 

Section  8  authorizes  the  establishment  of  rules  for  the  custody  and 
disposal  of  notes  received ;  and  section  9  makes  the  same  provision  for 
the  redemption  of  the  notes  at  maturity  and  their  purchase  at  any  time, 
as  section  8  of  the  Act  of  October  12,  1837,  on  page  120.] 

SEC.  10.  And  be  it  further  enacted,  That,  in  place  of  such 
treasury  notes  as  may  have  been  paid  and  redeemed,  other 
treasur}7  notes  to  the  same  amount  may  be  issued :  Pro- 
vided, That  the  aggregate  sum  outstanding,  under  the  au- 
thority of  this  act,  shall  at  no  time  exceed  twenty  millions 
of  dollars  :  And  provided  further,  That  the  power  to  issue 
and  reissue  treasuiy  notes,  conferred  on  the  President  of  the 
United  States  by  this  act,  shall  cease  and  determine  on  the 
first  day  of  January,  eighteen  hundred  and  fifty-nine. 

[Sections  12  and  13  provide  for  the  punishment  of  counterfeiting  and 
of  the  like  offences ;  and  section  14  requires  the  publication  of  a  monthly 
statement  of  the  amount  of  Treasury  notes  issued,  paid,  redeemed,  and 
outstanding  under  this  act.] 

[Approved,  December  23,  1857.    11  Statutes  at  Large,  257.] 


1859.]  TWENTY   MILLION   LOAN.  151 

1857-58,  Chap.  CLXV.  —  An  Act  to  authorize  a  Loan  not 
exceeding  the  Sum  of  Twenty  Millions  of  Dollars. 

[Section  1  empowers  the  President  to  borrow  on  the  credit  of  the 

:  United  States,  within  one  year  from  the  passage  of  this  act,  a  sum  not 

exceeding  twenty  millions  of  dollars,  provided,  that  the  loan  thus  made 

shall  be  reimbursable  at  any  time  after  fifteen  years  from  January  1, 

1859.] 

SEC.  2.  And  be  it  further  enacted,  That  stock  shall  be 
issued  for  the  amount  so  borrowed,  bearing  interest  not  ex- 
ceeding five  per  centum  per  annum,  payable  semi-annually, 
with  coupons  for  the  semi-annual  interest  attached  to  the 
certificates  of  stock  thus  created,  and  the  Secretary  of  the 
Treasury  be,  and  hereby  is,  authorized,  with  the  consent  of 
the  President,  to  cause  certificates  of  stock  to  be  prepared, 
which  shall  be  signed  by  the  Register,  and  sealed  with  the 
seal  of  the  Treasury  Department,  for  the  amount  so  bor- 
rowed in  favor  of  the  parties  lending  the  same,  or  their 
assigns ;  Provided,  That  no  certificate  shall  be  issued  for  a 
less  sum  than  one  thousand  dollars. 

[By  section  3  the  Secretary  of  the  Treasury  is  required,  before 
awarding  the  loan,  to  advertise  that  sealed  proposals  for  the  stock  will 
be  received  until  a  date  not  less  than  thirty  days  distant,  and  to  "  accept 
the  most  favorable  proposals  offered  by  responsible  bidders  ;  "  and  he  is 
also  required  to  report  to  Congress,  at  its  next  session,  all  transactions 
under  this  act,  "provided,  that  no  stock  shall  be  disposed  of  at  less  than 
its  par  value."] 

SEC.  4.  And  be  it  further  enacted.  That  the  faith  of  the 
United  States  is  -hereby  pledged  for  the  due  payment  of 
the  interest  and  the  redemption  of  the  principal  of  said 

stock. 

[Approved,  June  14,  1858.    11  Statutes  at  Large,  365.] 

1858-59,  Chap.  LXXXII.  —  An  Act  making  Appropriations 
for  sundry  Civil  Expenses  of  the  Government  for  the 
Tear  ending  the  thirtieth  of  June,  eighteen  hundred 
and  sixty. 

SEC.  5.  And  be  it  further  enacted,  That  the  power  to  issue 
and  reissue  treasury  notes,  conferred  on  the  President  of  the 


152  LOAN   TO   REDEEM   TREASURY   NOTES.  [1860. 

United  States,  by  the  act  entitled  "An  act  to  authorize  the 
issue  of  treasury  notes,"  approved  the  twenty-third  December, 
eighteen  hundred  and  fifty-seven,  be,  and  the  same  hereby  is, 
revived  and  continued  in  force  from  the  passage  of  this  act 
until  the  first  day  of  July  eighteen  hundred  and  shrty  ;  and  to 
defray  the  expenses  thereof  the  sura  of  five  thousand  dollars 
is  hereby  appropriated :  Provided,  That  the  said  notes  may 
be  issued  bearing  an  interest  not  exceeding  six  per  centum 
per  annum  ;  and  that  it  shall  not  be  necessary,  as  directed  by 
the  original  act  aforesaid,  after  advertisement  to  exchange 
them  for  specie  to  the  bidder  or  bidders  who  shall  agree  to 
make  such  exchange  at  the  lowest  rate  of  interest  upon  said 
notes  ;  and  that  in  all  other  respects  the  reissue  of  said  treas- 
ury notes  shall  be  subject  to  the  terms  and  conditions  of  the 
act  aforesaid. 

SEC.  6.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasurj*  is  hereby  authorized,  under  the  act  of  June  four- 
teenth, eighteen  hundred  and  fifty-eight,  to  issue  coupon  or 
registered  stock,  as  the  purchaser  may  elect. 

[Approved,  March  3,  1859.     11  Statutes  at  Large.  430.] 

1859-60,  Chap.  CLXXX.  —  An  Act  authorizing  a  Loan  and 
providing  for  the  Redemption  of  Treasury  Notes. 

JBe  it  enacted,  .  .  .  That  the  President  of  the  United  States 
be,  and  hereby  is,  authorized,  at  any  time  within  twelve 
months  from  the  passage  of  this  act,  to  borrow,  on  the  credit 
of  the  United  States,  a  sum  not  exceeding  twenty-one  mil- 
lions of  dollars,  or  so  much  thereof  as,  in  his  opinion,  the  exi- 
gencies of  the  public  service  ma}*  require,  to  be  used  in  the 
redemption  of  Treasuiy  notes  now  outstanding  and  to  replace 
in  the  Treasury  any  amount  of  said  notes  which  shall  have 
been  paid  and  received  for  public  dues,  and  for  no  other 
purposes. 

SEC.  2.  And  be  it  further  enacted,  That  stock  shall  be 
issued  for  the  amount  so  borrowed,  bearing  interest,  not  ex- 
ceeding six  per  centum  per  annum,  and  to  be  reimbursed 
within  a  period  not  bej-ond  twenty  years  and  not  less  than 


I860.]  PROVISIONS   FOR  ISSUING  STOCK.  153 

ten  years ;  and  the  Secretary  of  the  Treasury  be,  aud  is 
hereby  authorized,  with  the  consent  of  the  President,  to 
cause  certificates  of  stock  to  be  prepared,  which  shall  be 
signed  by  the  Register,  and  sealed  with  the  seal  of  the  Treas- 
ury Department,  for  the  amount  so  borrowed,  in  favor  of  the 
parties  lending  the  same,  or  their  assigns,  which  certificates 
may  be  transferred  on  the  books  of  the  Treasury,  under  such 
regulations  as  may  be  established  by  the  Secretary  of  the 
Treasury ;  Provided,  That  no  certificate  shall  be  issued  for  a 
less  sura  than  one  thousand  dollars ;  And  provided  also, 
That,  whenever  required,  the  Secretary  of  the  Treasury  may 
cause  coupons  of  semi-annual  interest  paj^able  thereon  to  be 
attached  to  certificates  issued  under  this  act ;  and  any  cer- 
tificate with  such  coupons  of  interest  attached  may  be  assigned 
and  transferred  by  delive^'  of  the  same,  instead  of  being 
transferred  on  the  books  of  the  Treasury. 

[Section  3  provides  for  sealed  proposals,  and  the  acceptance  of  the  most 
favorable,  and  for  a  report  of  all  transactions  to  Congress,  as  in  section  3 
of  the  Act  of  June  14,  1858,  on  page  151 ;  "Provided,  That  no  stock  shall 
be  disposed  of  at  less  than  its  par  value."] 

SEC.  4.  And  be  it  further  enacted,  That  the  faith  of  the 
United  States  is  hereby  pledged  for  the  due  pa}-ment  of  the 
interest  and  the  redemption  of  the  principal  of  said  stock. 

[Approved,  June  22,  1860.     12  Statutes  at  Large,  79.] 


PAKT    II. 

CURRENCY,  FINANCE,  AND  BANKING. 

1860-1890. 


1860-61,  Chap.  I.  —  An  Act  to  authorize  the  Issue  of  Treas- 
ury Notes,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  President  of  [the]  United 
[States]  be  hereby  authorized  to  cause  treasury  notes,  for 
such  sum  or  sums  as  the  exigencies  of  the  public  service  may 
require,  but  not  to  exceed  at  any  time  the  amount  of  ten  mil- 
lions of  dollars,  and  of  denominations  not  less  than  fifty  dollars 
for  any  such  note,  to  be  prepared,  signed,  and  issued  in  the 
manner  hereinafter  provided. 

SEC.  2.  And  be  it  further  enacted,  That  such  treasury  notes 
shall  be  paid  and  redeemed  by  the  United  States  at  the  Treas- 
ury thereof  after  the  expiration  of  one  year  from  the  date  of 
issue  of  such  notes ;  from  which  dates,  until  they  shall  be 
respectively  paid  and  redeemed,  they  shall  bear  such  rate  of 
interest  as  shall  be  expressed  in  such  notes,  which  rate  of  in- 
terest shall  be  six  per  centum  per  annum  :  Provided,  That, 
after  the  maturity  of  any  of  said  notes,  interest  thereon  shall 
cease  at  the  expiration  of  sixty  days'  notice  of  readiness  to 
redeem  and  pay  the  same,  which  may  at  an}*  time  or  times  be 
given  by  the  Secretary  of  the  Treasur}"  in  one  or  more  news- 
papers at  the  seat  of  government.  The  redemption  and  pay- 
ment of  said  notes,  herein  provided,  shall  be  made  to  the 
lawful  holders  thereof  respectively  upon  presentment  at  the 
Treasury,  and  shall  include  the  principal  of  each  note  and 
the  interest  which  shall  be  due  thereon.  And  for  the  payment 


156  INDEPENDENT   TREASURY    ACT.  [1861. 

and  redemption  of  such  notes  at  the  time  and  times  therein 
specified,  the  faith  of  the  United  States  is  hereby  solemnly 
pledged. 

[Section  3  provides  for  the  signing  of  the  treasury  notes  and  the  ac- 
counts to  be  kept  thereof.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  is  hereby  authorized,  with  the  approbation  of  the 
President,  to  cause  such  portion  of  said  treasury  notes  as  may 
be  deemed  expedient,  to  be  issued  by  the  Treasurer  in  pay- 
ment of  warrants  in  favor  of  public  creditors,  or  other  persons 
lawfully  entitled  to  payment,  who  may  choose  to  receive  such 
notes  in  payment  at  par ;  and  the  Secretary  of  the  Treasury 
is  hereby  authorized,  with  the  approbation  of  the  President, 
to  issue  the  notes  hereby  authorized  to  be  issued,  at  such  rate 
of  interest  as  may  be  offered  by  the  lowest  responsible  bidder 
or  bidders  who  ma}-  agree  to  take  the  said  notes  at  par  after 
public  advertisement  of  not  less  than  ten  days  in  such  papers 
as  the  President  may  direct,  the  said  advertisement  to  propose 
to  issue  such  notes  at  par  to  those  who  may  offer  to  take  the 
same  at  the  lowest  rate  of  interest.  But  in  deciding  upon 
those  bids  no  fraction  shall  be  considered  which  may  be  less 
than  one-fourth  per  centum  per  annum. 

[Sections  5-9,  providing  for  the  transfer,  receipt,  custody,  redemption, 
and  cancellation  of  the  notes,  are  identical  with  sections  5-9  of  the  Act  of 
December  23,  1857,  on  page  150.] 

SEC.  10.  And  be  it  further  enacted,  That,  in  place  of  such 
treasury  notes  as  may  have  been  paid  and  redeemed,  other 
treasury  notes  to  the  same  amount  ma}-  be  issued  :  Provided, 
That  the  aggregate  sum  outstanding  under  the  authority  of 
this  act  shall  at  no  time  exceed  the  sum  of  ten  millions  of 
dollars  :  And  provided  further,  That  the  power  to  issue  and 
reissue  treasury  notes  conferred  by  this  act  shall  cease  and 
determine  on  the  first  day  of  January,  in  the  year  eighteen 
hundred  and  sixty-three. 

[Section  14  requires  the  publication  of  a  monthly  statement  of  the 
amount  of  notes  issued,  paid,  redeemed,  and  outstanding  under  this  act, 
as  in  section  14  of  the  act  last  mentioned. 


1861.]         DUTIES    OF   RECEIVERS    OF   PUBLIC    MONEYS.  157 

Section  15  requires  that  all  money  hereafter  contracted  for  under  the 
act  of  June  22,  1860,  on  page  152,  shall  be  used  for  the  redemption  of 
treasury  notes  now  outstanding  or  to  be  issued.] 

[Approved,  December  17,  1860.     12  Statutes  at  Large,  121.] 


1860-61,  Chap.  XXIX.  —  An  Act  authorizing  a  Loan. 

SECTION  1.  Be  it  enacted,  .  .  .  That  the  President  of  the 
United  States  be  and  hereby  is  authorized,  at  any  time  be- 
fore the  first  da}T  of  July  next,  to  borrow,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  twenty- five  millions  of  dol- 
lars, or  so  much  thereof  as,  in  his  opinion,  the  exigencies  of 
the  public  service  may  require  to  be  used  in  the  pa}-ment  of 
the  current  demands  upon  the  Treasury  and  for  the  redemp- 
tion of  treasury  notes  now  outstanding,  and  to  replace  in  the 
Treasury  any  amount  of  said  notes  which  shall  have  been  paid 
and  received  for  public  dues. 

[Section  2  provides  that  stock  shall  be  issued,  bearing  interest  not  ex- 
ceeding six  per  cent,  and  "to  be  reimbursed  within  a  period  not  beyond 
twenty  years  and  not  less  than  ten  years,"  the  stock  being  transferable 
on  the  books  of  the  Treasury,  and  no  certificate  being  issued  for  less  than 
one  thousand  dollars ;]  — 

And  provided,  also,  That,  whenever  required,  the  Secretary 
of  the  Treasury  may  cause  coupons  of  semi-annual  interest 
pa.yable  thereon  to  be  attached  to  certificates  issued  under 
this  act ;  and  any  certificate  with  such  coupons  of  interest 
attached  may  be  assigned  and  transferred  by  delivery  of 
the  same,  instead  of  being  transferred  on  the  books  of  the 
Treasury. 

[Section  3  provides  for  sealed  proposals,  to  be  received  for  a  period  of 
not  less  tlian  ten  days,  for  the  acceptance  of  the  most  favorable  offers 
made  by  responsible  bidders,  and  for  a  report  of  all  transactions  to 
Congress.] 

SEC.  4.  And  be  it  further  enacted,  That  the  faith  of  the 
United  States  is  hereby  pledged  for  the  due  payment  of  the 
interest  and  the  redemption  of  the  principal  of  said  stock. 

[By  section  5  the  residue  of  the  loan  authorized  by  the  act  of  June  22, 
1860,  on  page  152,  is  to  be  applied  to  the  redemption  of  treasury  notes 
issued  under  the  act  of  December  17, 1860,  on  page  156 ;  and  bonds  au- 


158  INDEPENDENT  TREASURY  ACT.          [1861. 

thorized  by  said  first  mentioned  act  may  be  exchanged  at  par  for  said 
treasury  notes  and  their  accrued  interest.] 

SEC.  7.  And  be  it  further  enacted,  That  the  Secretary  of 
the  Treasury  shall  not  be  obliged  to  accept  the  most  favorable 
bids  as  hereinbefore  provided,  unless  he  shall  consider  it  ad- 
vantageous to  the  United  States  to  do  so,  but  for  any  portion 
of  such  loan,  not  taken  under  the  first  advertisement,  he  ma}r 
advertise  again  at  his  discretion. 

[Approved,  February  8, 1861.    12  Statutes  at  Large,  129.] 

1860-61,  Chap.  LXVIII.  —  An  Act  to  provide  for  the  Pay- 
ment of  outstanding  Treasury  Notes,  to  authorize  a 
Loan,  to  regulate  and  fix  the  Duties  on  Imports,  and 
for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  President  of  the  United  States 
be,  and  hereby  is,  authorized,  at  any  time  within  twelve  months 
from  the  passage  of  this  act,  to  borrow,  on  the  credit  of  the 
United  States,  a  sum  not  exceeding  ten  millions  of  dollars,  or 
so  much  thereof  as,  in  his  opinion,  the  exigencies  of  the  public 
service  may  require,  to  be  applied  to  the  payment  of  appropri- 
ations made  by  law,  and  the  balance  of  treasury  notes  now 
outstanding,  and  no  other  purposes,  in  addition  to  the  money 
received  or  which  may  be  received,  into  the  treasury  from 
other  sources  :  Provided,  That  no  stipulation  or  contract  shall 
be  made  to  prevent  the  United  States  from  reimbursing  any 
sum  borrowed  under  the  authority  of  this  act  at  any  time  after 
the  expiration  often  }*ears  from  the  first  day  of  July  next,  by 
the  United  States  giving  three  months'  notice,  to  be  published 
in  some  newspaper  published  at  the  seat  of  government,  of 
their  readiness  to  do  so ;  and  no  contract  shall  be  made  to 
prevent  the  redemption  of  the  same  at  any  time  after  the  ex- 
piration of  twenty  years  from  the  said  first  day  of  July  next, 
without  notice. 

[Section  2  provides  for  the  issue  of  either  registered  or  coupon  certifi- 
cates as  may  be  required,  bearing  interest  not  exceeding  six  per  cent.,  in 
language  identical  with  that  of  section  2  of  the  Act  of  February  8,  1861, 
omitting,  however,  any  provision  as  to  the  time  of  reimbursement. 

Section  3  provides  for  sealed  proposals,  to  be  received  within  a  period 


1861.]  CURRENCY   TO    BE   RECEIVED    AND    PAID.  159 

of  not  less  than  thirty  days,  for  the  acceptance  of  the  most  favorable 
offers  made  by  responsible  bidders,  and  for  a  report  of  all  transactions  to 
Congress  :  "provided,  That  no  stock  shall  be  disposed  of  at  less  than  its 
par  value :  And  provided  further,  That  no  part  of  the  loan  hereby  author- 
ized shall  be  applied  to  the  service  of  the  present  fiscal  year."] 

SEC.  4.  And  be  it  further  enacted,  That  in  case  the  proposals 
made  for  said  loan,  or  for  so  much  thereof  as  the  exigencies 
of  the  public  service  shall  require,  shall  not  be  satisfactory, 
the  President  of  the  United  States  shall  be,  and  hereby  is,  au- 
thorized to  decline  to  accept  such  offer  if  for  less  than  the  par 
value  of  the  bonds  constituting  the  said  stock,  and  in  liew 
thereof,  and  to  the  extent  and  the  amount  of  the  loan  author- 
ized to  be  made  by  this  act,  to  issue  treasury  notes  for  sums 
not  less  than  fifty  dollars,  bearing  interest  at  the  rate  of  six 
per  centum  per  annum,  payable  semi-annually  on  the  first  days 
of  January  and  July  in  each  }'ear,  at  proper  places  of  payment 
to  be  prescribed  b}T  the  Secretary,  with  the  approval  of  the 
President ;  and  under  the  like  circumstances  and  conditions, 
the  President  of  the  United  States  is  hereby  authorized  to 
substitute  treasury  notes  of  equal  amount  for  the  whole  or  any 
part  of  the  loans  for  which  he  is  now  by  law  authorized  to 
contract  and  issue  bonds.  And  the  treasury  notes  so  issued 
under  the  authority  herein  given,  shall  be  received  in  payment 
for  all  debts  due  to  the  United  States  when  offered,  and  in 
like  manner  shall  be  given  in  payment  for  any  sum  due  from 
the  United  States,  when  payment  in  that  mode  is  requested 
b}r  the  person  to  whom  pa3*ment  is  to  be  made,  or  for  their  par 
value  in  coin.  And  the  faith  of  the  United  States  is  hereby 
pledged  for  the  due  pa3'ment  of  the  interest  and  the  redemp- 
tion of  the  principal  of  the  stock  or  treasury  notes  which  may 
be  issued  under  the  authority  of  this  act ;  and  the  sum  of 
twenty  thousand  dollars  is  hereby  appropriated,  out  of  any 
money  in  the  treasury  not  otherwise  appropriated,  to  pay  the 
expenses  of  preparing  the  certificates  of  stock  or  treasury 
notes  herein  authorized,  to  be  done  in  the  usual  mode  and 
under  the  restrictions  as  to  employment  and  payment  of  offi- 
cers contained  in  the  laws  authorizing  former  loans  and  issues 
of  treasury  notes  ;  and  it  shall  be  at  the  option  of  holders  of 


160  TREASURY   NOTE   ACT.  [1861. 

the  treasur3r  notes  hereby  authorized  by  this  act,  to  exchange 
the  same  for  the  stock  herein  authorized,  at  par,  or  for  bonds, 
in  lieu  of  which  said  treasury  notes  were  issued :  Provided, 
That  no  certificate  shall  be  exchanged  for  treasury  notes,  or 
bonds,  in  suras  less  than  five  hundred  dollars  :  And  provided, 
further,  That  the  authority  to  issue  the  said  treasury  notes, 
or  give  the  same  in  payment  for  debts  due  from  the  United 
States,  shall  be  limited  to  the  thirtieth  day  of  June,  eighteen 
hundred  and  sixtj'-two  ;  and  that  the  same  may  be  redeemable 
at  the  pleasure  of  the  United  States  at  an}7  time  within  two 
years  after  the  passage  of  this  act ;  and  that  said  notes  shall 
cease  to  bear  interest  after  they  shall  have  been  called  in 
b\T  the  Secretary  of  the  Treasury  under  the  provisions  of 
this  act. 

[The  remaining  sections  of  this  act  contain  what  is  known  as  the 
Morrill  tariff.] 

[Approved,  March  2,  1861.     12  Statutes  at  Large,  178  ] 

1861,  Chap.  V.  —  An  Act  to  authorize  a  National  Loan, 
and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  be 
and  he  is  hereby,  authorized  to  borrow  on  the  credit  of  the 
United  States,  within  twelve  months  from  the  passage  of  this 
act,  a  sum  not  exceeding  two  hundred  and  fifty  millions  of 
dollars,  or  so  much  thereof  as  he  may  deem  necessaiy  for  the 
public  service,  for  which  he  is  authorized  to  issue  coupon 
bonds,  or  registered  bonds,  or  treasurj-  notes,  in  such  propor- 
tions of  each  as  he  may  deem  advisable ;  the  bonds  to  bear 
interest  not  exceeding  seven  per  centum  per  annum,  payable 
semi-annually,  irredeemable  for  twenty  j-ears,  and  after  that 
period  redeemable  at  the  pleasure  of  the  United  States ;  and 
the  treasury  notes  to  be  of  any  denomination  fixed  by  the 
Secretary  of  the  Treasury,  not  less  than  fifty  dollars,  and 
to  be  payable  three  years  after  date,  with  interest  at  the 
rate  of  seven  and  three  tenths  per  centum  per  annum,  payable 
semi-annuall}'.  And  the  Secretary  of  the  Treasury  maj'  also 
issue  in  exchange  for  coin,  and  as  part  of  the  above  loan,  or  may 
pay  for  salaries  or  other  dues  from  the  United  States,  treasury 


1861.]  DEMAND   NOTES.  161 

notes  of  a  less  denomination  than  fifty  dollars,  not  bearing  inter- 
est, but  payable  on  demand  by  the  Assistant  Treasurers  of  the 
United  States  at  Philadelphia,  New  York,  or  Boston,  or  treas- 
ury notes  bearing  interest  at  the  rate  of  three  and  sixty-five 
huudredths  per  centum,  payable  in  one  year  from  date,  and  ex- 
changeable at  any  time  for  treasury  notes  for  fifty  dollars,  and 
upwards,  issuable  under  the  authority  of  this  act,  and  bearing 
interest  as  specified  above  :  Provided,  That  no  exchange  of  such 
notes  in  any  less  amount  than  one  hundred  dollars  shall  be  made 
at  any  one  time:  And  provided  further,  That  no  treasury  notes 
shall  be  issued  of  a  less  denomination  than  ten  dollars,  and  that 
the  whole  amount  of  treasury  notes,  not  bearing  interest,  issued 
under  the  authority  of  this  act,  shall  not  exceed  fifty  millions  of 
dollars. 

[Section  3  authorizes  the  Secretary  of  the  Treasury  to  open  books  for 
subscriptions  for  the  treasury  notes,  at  such  places  as  he  may  select ;  and, 
if  he  thinks  expedient,  before  opening  such  books,  to  pay  out  for  public 
dues,  or  for  coin,  or  for  the  public  debt,  any  amount  of  said  treasury 
notes  not  exceeding  one  hundred  millions  of  dollars. 

Section  4  provides  for  the  issue  of  proposals  in  the  United  States  for 
such  portion  of  the  loan  in  bonds  as  the  Secretary  may  determine,  "Pro- 
vided, That  no  offer  shall  be  accepted  at  less  than  par." 

Section  5  authorizes  the  Secretary  of  the  Treasury  to  negotiate  any 
part  of  the  loan,  not  exceeding  one  hundred  millions  of  dollars,  in  any 
foreign  country;  to  make  the  principal  and  interest  payable  either  in 
the  United  States  or  in  Europe;  and  to  fix  the  rate  of  exchange  at  which 
the  principal  shall  be  received,  which  rate  shall  also  be  the  rate  of  ex- 
change for  the  payment  of  the  principal  and  interest  in  Europe.] 

SEC.  6.  And  be  it  further  enacted,  That  whenever  any  treas- 
ury notes  of  a  denomination  less  than  fifty  dollars,  authorized  to 
be  issued  by  this  act,  shall  have  been  redeemed,  the  Secretary 
of  the  Treasury  may  reissue  the  same,  or  may  cancel  them  and 
issue  new  notes  to  an  equal  amount :  Provided,  That  the  aggre- 
gate amounts  of  bonds  and  treasury  notes  issued  under  the 
foregoing  provisions  of  this  act  shall  never  exceed  the  full 
amount  authorized  by  the  first  section  of  this  act ;  and  the  power 
to  issue  or  reissue  such  notes  shall  cease  and  determine  after  the 
thirty-first  of  December,  eighteen  hundred  and  sixty-two. 

SEC.  7.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized,  whenever  he  shall  deem  it  expe- 

11 


162  DEPOSIT   OF   PUBLIC    MONEYS.  [1861. 

dient,  to  issue  in  exchange  for  coin,  or  in  )aynient  for  public 
dues,  treasury  notes  of  any  of  the  denominations  hereinbefore 
specified,  bearing  interest  not  exceeding  six  per  centum  per 
annum,  and  payable  at  any  time  not  exceeding  twelve  months 
from  date,  provided  that  the  amount  of  notes  so  issued,  or 
paid,  shall  at  no  time  exceed  twent}r  millions  of  dollars. 

SEC.  9.  And  be  it  further  enacted,  That  the  faith  of  the 
United  States  is  hereby  solemnly  pledged  for  the  payment 
of  the  interest  and  redemption  of  the  principal  of  the  loan 
authorized  by  this  act. 

[Approved,  July  17,  1861.     12  Statutes  at  Large,  259.] 

1861,  Chap.  XL VI.  —  An  Act  supplementary  to  an  Act  enti- 
tled "An  Act  to  authorize  a  National  Loan,  and  for 
other  Purposes" 

[Section  1  authorizes  the  Secretary  of  the  Treasury  to  issue  bonds 
bearing  interest  at  six  per  cent,  per  annum,  and  payable  at  the  pleasure 
of  the  United  States  after  twenty  years  from  date,  to  be  given  in  ex- 
change for  such  treasury  notes,  bearing  interest  at  seven  and  three  tenths 
per  cent.,  issued  under  the  act  of  July  17, 1861,  as  the  holders  may  present 
for  exchange  before  or  at  the  maturity  thereof.  Any  part  of  the  treasury 
notes  payable  on  demand,  authorized  by  said  act,  may  be  made  payable 
by  the  Assistant  Treasurer  at  St.  Louis,  or  the  depositary  at  Cincinnati. 

Section  8  provides  that  the  demand  notes  issued  under  the  previous 
act  may  be  of  denominations  not  less  titan  five  dollars.] 

SEC.  5.  And  be  it  further  enacted,  That  the  treasury  notes 
authorized  by  the  act  to  which  this  is  supplementary,  of  a  less 
denomination  than  fifty  dollars,  payable  on  demand  without  in- 
terest, and  not  exceeding  in  amount  the  sum  of  fifty  millions  of 
dollars,  shall  be  receivable  in  payment  of  public  dues. 

SEC.  6.  And  be  it  further  enacted,  That  the  provisions  of  the 
act  entitled  "  An  act  to  provide  for  the  better  organization  of 
the  Treasury,  and  for  the  collection,  safe-keeping,  transfer, 
and  disbursements  of  the  public  revenue,"  passed  August  six, 
eighteen  hundred  and  forty-six,  be  and  the  same  are  hereby 
suspended,  so  far  as  to  allow  the  Secretary  of  the  Treasury  to 
deposit  any  of  the  moneys  obtained  on  any  of  the  loans  now 
authorized  by  law,  to  the  credit  of  the  Treasurer  of  the  United 
States,  in  such  solvent  specie-paying  banks  as  he  may  select ; 


1862.]  FIRST   LEGAL    TENDER   ACT.  163 

and  the  said  moneys,  so  deposited,  may  be  withdrawn  from  such 
deposit  for  deposit  with  the  regular  authorized  depositaries,  or 
for  the  payment  of  public  dues,  or  paid  in  redemption  of  the 
notes  authorized  to  be  issued  under  this  act,  or  the  act  to  which 
this  is  supplementary,  payable  on  demand,  as  may  seem  expedient 
to,  or  be  directed  by,  the  Secretary  of  the  Treasury. 

SEC.  7.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  sell  or  negotiate,  for  any  portion  of  the  loan  pro- 
vided for  in  the  act  to  which  this  is  supplementary,  bonds  pay- 
able not  more  than  twenty  years  from  date,  and  bearing  interest 
not  exceeding  six  per  centum  per  annum,  payable  semi-annually, 
at  any  rate  not  less  than  the  equivalent  of  par,  for  die  bonds 
bearing  seven  per  centum  interest,  authorized  by  said  act. 

[Approved,  August  5,  1861.    12  Statutes  at  Large,  313.] 

1861-62,  Chap.  XX. — An  Act  to  authorize  an  additional 

Issue  of  United  /States  Notes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury,  in 
addition  to  the  fifty  millions  of  notes  payable  on  demand  of  de- 
nominations not  less  than  five  dollars,  heretofore  authorized  by 
the  acts  of  July  seventeenth  and  August  fifth,  eighteen  hundred 
and  sixty-one,  be,  and  he  is  hereby,  authorized  to  issue  like 
notes,  and  for  like  purposes,  to  the  amount  of  ten  millions  of 
dollars,  and  said  notes  shall  be  deemed  part  of  the  loan  of  two 
hundred  and  fifty  millions  of  dollars  authorized  by  said  acts. 

[Approved,  February  12,  1862.    12  Statutes  at  Large,  338.] 

1861-62,  Chap.  XXXIII.  —  An  Act  to  authorize  the  Issue  of 
United  /States  Notes,  and  for  the  Redemption  or  Fund- 
ing thereof,  and  for  Funding  the  Floating  Debt  of  the 

United  /States. 

Be  it  enacted^  .  .  .  That  the  Secretaiy  of  the  Treasury  is 
hereby  authorized  to  issue,  on  the  credit  of  the  United  States,  one 
hundred  and  fifty  millions  of  dollars  of  United  States  notes,  not 
bearing  interest,  payable  to  bearer,  at  the  Treasury  of  the  United 
States,  and  of  such  denominations  as  he  may  deem  expedient, 
not  less  than  five  dollars  each:  Provided,  however,  That  fifty 
millions  of  said  notes  shall  be  in  lieu  of  the  demand  treasury 


164  FIRST   ISSUE    OF    FIVE-TWENTIES.  [18G2. 

notes  authorized  to  be  issued  by  the  act  of  July  seventeen,  eigh- 
teen hundred  and  sixty-one ;  which  said  demand  notes  shall  be 
taken  up  as  rapidly  as  practicable,  and  the  notes  herein  provided 
for  substituted  for  them:  And  provided  further,  That  the  amount 
of  the  two  kinds  of  notes  together  shall  at  no  time  exceed  the 
sum  of  one  hundred  and  fifty  millions  of  dollars,  and  such  notes 
herein  authorized  shall  be  receivable  in  payment  of  all  taxes, 
internal  duties,  excises,  debts,  and  demands  of  every  kind  due  to 
the  United  States,  except  duties  on  imports,  and  of  all  claims  and 
demands  against  the  United  States  of  every  kind  whatsoever, 
except  for  interest  upon  bonds  and  notes,  which  shall  be  paid  in 
coin,  and  shall  also  be  lawful  money  and  a  legal  tender  in  pay- 
ment of  all  debts,  public  and  private,  within  the  United  States, 
except  duties  on  imports  and  interest  as  aforesaid.  And  any 
holders  of  said  United  States  notes  depositing  any  sum  not  less 
than  fifty  dollars,  or  some  multiple  of  fifty  dollars,  with  the 
Treasurer  of  the  United  States,  or  either  of  the  Assistant  Treas- 
urers, shall  receive  in  exchange  therefor  duplicate  certificates  of 
deposit,  one  of  which  may  be  transmitted  to  the  Secretary  of  the 
Treasury,  who  shall  thereupon  issue  to  the  holder  an  equal 
amount  of  bonds  of  the  United  States,  coupon  or  registered,  as 
may  by  said  holder  be  desired,  bearing  interest  at  the  rate  of  six 
per  centum  per  annum,  payable  semi-annually,  and  redeemable 
at  the  pleasure  of  the  United  States  after  five  years,  and  payable 
twenty  years  from  the  date  thereof.  And  such  United  States 
notes  shall  be  received  the  same  as  coin,  at  their  par  value,  in 
payment  for  any  loans  that  may  be  hereafter  sold  or  negotiated 
by  the  Secretary  of  the  Treasury,  and  may  be  re-issued  from  time 
to  time  as  the  exigencies  of  the  public  interests  shall  require. 

SEC.  2.  And  be  it  further  enacted,  That  to  enable  the  Sec- 
retary of  the  Treasury  to  fund  the  treasury  notes  and  floating 
debt  of  the  United  States,  he  is  hereby  authorized  to  issue,  on 
the  credit  of  the  United  States,  coupon  bonds,  or  registered  bonds, 
to  an  amount  not  exceeding  five  hundred  millions  of  dollars, 
redeemable  at  the  pleasure  of  the  United  States  after  five  years, 
and  payable  twenty  years  from  date,  and  bearing  interest  at  the 
rate  of  six  per  centum  per  annum,  payable  Bemi-annually.  And 
the  bonds  herein  authorized  shall  be  of  such  denominations,  not 


1862.]  TEMPORARY   DEPOSITS  :    SINKING   FUND.  165 

less  than  fifty  dollars,  as  may  be  determined  upon  by  the  Secre- 
tary of  the  Treasury.  And  the  Secretary  of  the  Treasury  may 
dispose  of  such  bonds  at  any  time,  at  the  market  value  thereof, 
for  the  coin  of  the  United  States,  or  for  any  of  the  treasury  notes 
that  have  been  or  may  hereafter  be  issued  under  any  former  act 
of  Congress,  or  for  United  States  notes  that  may  be  issued  under 
the  provisions  of  this  act ;  and  all  stocks,  bonds,  and  other  secu- 
rities of  the  United  States  held  by  individuals,  corporations,  or 
associations,  within  the  United  States,  shall  be  exempt  from 
taxation  by  or  under  State  authority. 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  receive  from  any  person  or  persons,  or  any  corpo- 
ration, United  States  notes  on  deposit  for  not  less  than  thirty 
days,  in  sums  of  not  less  than  one  hundred  dollars,  with  any  of 
the  Assistant  Treasurers  or  designated  depositaries  of  the  United 
States  authorized  by  the  Secretary  of  the  Treasury  to  receive 
them,  who  shall  issue  therefor  certificates  of  deposit,  made  in 
such  form  as  the  Secretary  of  the  Treasury  shall  prescribe,  and 
said  certificates  of  deposit  shall  bear  interest  at  th<3  rate  of  five 
per  centum  per  annum ;  and  any  amount  of  United  States  notes 
so  deposited  may  be  withdrawn  from  deposit  at  any  time  after 
ten  days'  notice  on  the  return  of  said  certificates:  Provided, 
That  the  interest  on  all  such  deposits  shall  cease  and  determine 
at  the  pleasure  of  the  Secretary  of  the  Treasury  :  And  provided 
further,  That  the  aggregate  of  such  deposit  shall  at  no  time 
exceed  the  amount  of  twenty-five  millions  of  dollars. 

SEC.  5.  And  be  it  further  enacted,  That  all  duties  on  im- 
ported goods  shall  be  paid  in  coin,  or  in  notes  payable  on 
demand  heretofore  authorized  to  be  issued  and  by  law  receivable 
in  payment  of  public  dues,  and  the  coin  so  paid  shall  be  set  apart 
as  a  special  fund,  and  shall  be  applied  as  follows : 

First.  To  the  payment  in  coin  of  the  interest  on  the  bonds 
and  notes  of  the  United  States. 

Second.  To  the  purchase  or  payment  of  one  per  centum  of 
the  entire  debt  of  the  United  States,  to  be  made  within  each 
fiscal  year  after  the  first  day  of  July,  eighteen  hundred  and  sixty- 
two,  which  is  to  be  set  apart  as  a  sinking  fund,  and  the  interest 
of  wliich  shall  in  like  manner  be  applied  to  the  purchase  or  pay 


166  CERTIFICATES    OF   INDEBTEDNESS.  [1862. 

ment  of  the  public  debt  as  the  Secretary  of  the  Treasury  shall 
from  time  to  time  direct. 

Third.  The  residue  thereof  to  be  paid  into  the  Treasury  of  the 
United  States. 

[Approved,  February  25, 1862.    12  Statutes  at  Large,  345.) 

1861-62,  Chap.  XXXV.  —  An  Act  to  authorize  the  Secretary 
of  the  Treasury  to  Issue  Certificates  of  Indebtedness  to 
Public  Creditors. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
be,  and  he  is  hereby  authorized,  to  cause  to  be  issued  to  any 
public  creditor  who  may  be  desirous  to  receive  the  same,  upon 
requisition  of  the  head  of  the  proper  department  in  satisfaction 
of  audited  and  settled  demands  against  the  United  States,  cer- 
tificates for  the  whole  amount  due  or  parts  thereof  not  less  than 
one  thousand  dollars,  signed  by  the  Treasurer  of  the  United 
States,  and  countersigned  as  may  be  directed  by  the  Secretary 
of  the  Treasury  ;  which  certificates  shall  be  payable  in  one  year 
from  date  or  earlier,  at  the  option  of  the  Government,  and  shall 
bear  interest  at  the  rate  of  six  per  centum  per  annum. 

[Approved,  March  1, 1862.    12  Statutes  at  Large,  352.] 

1861-62,  Chap.  XLV.  —  An  Act  to  authorize  the  Purchase 
of  Coin,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
may  purchase  coin  with  any  of  the  bonds  or  notes  of  the  United 
States,  authorized  by  law,  at  such  rates  and  upon  such  terms  as 
he  may  deem  most  advantageous  to  the  public  interest ;  and  may 
issue,  under  such  rules  and  regulations  as  he  may  prescribe,  cer- 
tificates of  indebtedness,  such  as  are  authorized  by  an  act  en- 
titled "  An  act  to  authorize  the  Secretary  of  the  Treasury  to 
issue  certificates  of  indebtedness  to  public  creditors,"  approved 
March  first,  eighteen  hundred  and  sixty-two,  to  such  creditors  as 
may  desire  to  receive  the  same,  in  discharge  of  checks  drawn  by 
disbursing  officers  upon  sums  placed  to  their  credit  on  the  books 
of  the  Treasurer,  upon  requisitions  of  the  proper  departments, 
as  well  as  in  discharge  of  audited  and  settled  accounts,  as  pro- 
vided by  said  act. 


1862.]  SECOND   LEGAL   TENDER   ACT.  167 

SEC.  2.  And  be  it  further  enacted,  That  the  demand-notes 
authorized  by  the  act  of  July  seventeenth,  eighteen  hundred  and 
sixty-one,  and  by  the  act  of  February  twelfth,  eighteen  hundred 
and  sixty-two,  shall,  in  addition  to  being  receivable  in  payment 
of  duties  on  imports,  be  receivable,  and  shall  be  lawful  money 
and  a  legal  tender,  in  like  manner,  and  for  the  same  purposes, 
and  to  the  same  extent,  as  the  notes  authorized  by  an  act  en- 
titled "  An  act  to  authorize  the  issue  of  United  States  notes, 
and  for  the  redemption  or  funding  thereof,  and  for  funding  the 
floating  debt  of  the  United  States,"  approved  February  twenty- 
fifth,  eighteen  hundred  and  sixty-two. 

SEC.  3.  And  be  it  further  enacted,  That  the  limitation  upon 
temporary  deposits  of  United  States  notes  with  any  Assistant 
Treasurers  or  designated  depositaries,  authorized  by  the  Secre- 
tary of  the  Treasury  to  receive  such  deposits,  at  five  per  cent, 
interest,  to  twenty-five  millions  of  dollars,  shall  be  so  far  modi- 
fied as  to  authorize  the  Secretary  of  the  Treasury  to  receive 
such  deposits  to  an  amount  not  exceeding  fifty  millions  of  dollars, 
and  that  the  rates  of  interest  shall  be  prescribed  by  the  Secre- 
tary of  the  Treasury  not  exceeding  the  annual  rate  of  five  per 
centum. 

[Approved,  March  17, 1862.    12  Statutes  at  Large,  370.] 

1861-62,  Chap.  CXLII.  —  An  Act  to  authorize  an  additional 
Issue  of  United  States  Notes,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
is  hereby  authorized  to  issue,  in  addition  to  the  amounts  hereto- 
fore authorized,  on  the  credit  of  the  United  States,  one  hundred 
and  fifty  millions  of  dollars  of  United  States  notes,  not  bearing 
interest,  payable  to  bearer  at  the  Treasury  of  the  United  States, 
and  of  such  denominations  as  he  may  deem  expedient :  Provided^ 
That  no  note  shall  be  issued  for  the  fractional  part  of  a  dollar, 
and  not  more  than  thirty-five  millions  shall  be  of  lower  denom- 
inations than  five  dollars;  and  such  notes  shall  be  receivable 
in  payment  of  all  loans  made  to  the  United  States,  and  of  all 
taxes,  internal  duties,  excises,  debts,  and  demands  of  every  kind 
due  to  the  United  States,  except  duties  on  imports  and  interest, 


168  INCREASE   OF   TEMPORARY   DEPOSITS.  [1862. 

aud  of  all  claims  and  demands  against  the  United  States,  except 
for  interest  upon  bonds,  notes,  and  certificates  of  debt  or  deposit ; 
and  shall  also  be  lawful  money  and  a  legal  tender  in  payment  of 
all  debts,  public  and  private,  within  the  United  States,  except 
duties  on  imports  and  interest,  as  aforesaid.  And  any  holder  of 
said  United  States  notes  depositing  any  sum  not  less  than  fifty 
dollars,  or  some  multiple  of  fifty  dollars,  with  the  Treasurer  of 
the  United  States,  or  either  of  the  assistant  treasurers,  shall  re- 
ceive in  exchange  therefor  duplicate  certificates  of  deposit,  one 
of  which  may  be  transmitted  to  the  Secretary  of  the  Treasury, 
who  shall  thereupon  issue  to  the  holder  an  equal  amount  of  bonds 
of  the  United  States,  coupon  or  registered,  as  may  by  said  holder 
be  desired,  bearing  interest  at  the  rate  of  six  per  centum  per  an- 
num, payable  semi-annually,  and  redeemable  at  the  pleasure  of 
the  United  States  after  five  years,  and  payable  twenty  years 
from  the  date  thereof:  Provided,  hoicever,  That  any  notes  issued 
under  this  act  may  be  paid  in  coin,  instead  of  being  received  in 
exchange  for  certificates  of  deposit  as  above  specified,  at  the 
direction  of  the  Secretary  of  the  Treasury.  And  the  Secretary 
of  the  Treasury  may  exchange  for  such  notes,  on  such  terms  as 
he  shall  think  most  beneficial  to  the  public  interest,  any  bonds  of 
the  United  States  bearing  six  per  centum  interest,  and  redeem- 
able after  five  and  payable  in  twenty  years,  which  have  been  or 
may  be  lawfully  issued  under  the  provisions  of  any  existing  act ; 
may  reissue  the  notes  so  received  in  exchange ;  may  receive 
and  cancel  any  notes  heretofore  lawfully  issued  under  any  act  of 
Congress,  and  in  lieu  thereof  issue  an  equal  amount  in  notes 
such  as  are  authorized  by  this  act ;  and  may  purchase,  at  rates 
not  exceeding  that  of  the  current  market,  and  cost  of  purchase  not 
exceeding  one-eighth  of  one  per  centum,  any  bonds  or  certifi- 
cates of  debt  of  the  United  States  as  he  may  deem  advisable. 

SEC.  3.  And  be  it  further  enacted,  That  the  limitation  upon 
temporary  deposits  of  United  States  notes  with  any  Assistant 
Ti  easurer  or  designated  depositary  authorized  by  the  Secretary 
of  the  Treasury  to  receive  such  deposits,  to  fifty  millions  of  dol- 
lars be,  and  is  hereby,  repealed  ;  and  the  Secretary  of  the  Treas- 
ury is  authorized  to  receive  such  deposits,  under  such  regulations 
as  he  may  prescribe,  to  such  amount  as  he  may  deem  expedient, 


1862.]  POSTAGE   CURRENCY.  169 

not  exceeding  one  hundred  millions  of  dollars,  for  not  less  thai) 
thirty  days,  in  sums  not  less  than  one  hundred  dollars,  at  a  rate 
of  interest  not  exceeding  five  per  centum  per  annum ;  and  any 
amount  so  deposited  may  be  withdrawn  from  deposit,  at  any  time 
after  ten  days'  notice,  on  the  return  of  the  certificate  of  deposit. 
And  of  the  amount  of  United  States  notes  authorized  by  this  act, 
not  less  than  fifty  millions  of  dollars  shall  be  reserved  for  the 
purpose  of  securing  prompt  payment  of  such  deposits  when  de- 
manded, and  shall  be  issued  and  used  only  when,  in  the  judgment 
of  the  Secretary  of  the  Treasury,  the  same  or  any  part  thereof 
may  be  needed  for  that  purpose.  And  certificates  of  deposit 
and  of  indebtedness  issued  under  this  or  former  acts  may  be  re- 
ceived on  the  same  terms  as  United  States  notes  in  payment  for 
bonds  redeemable  after  five  and  payable  in  twenty  years. 

SEC.  4.  And  be  it  further  enacted.  That  the  Secretary  of  the 
Treasury  may,  at  any  time  until  otherwise  ordered  by  Congress, 
and  under  the  restrictions  imposed  by  the  "  Act  to  authorize  a 
national  loan,  and  for  other  purposes,"  borrow,  on  the  credit  of 
the  United  States,  such  part  of  the  sum  of  two  hundred  and 
fifty  millions  mentioned  in  said  act  as  may  not  have  been  bor- 
rowed, under  the  provisions  of  the  same,  within  twelve  months 
from  the  passage  thereof. 

SEC.  6.  And  be  it  further  enacted,  That  all  the  provisions  of 
the  act  entitled  "  An  act  to  authorize  the  issue  of  United  States 
notes,  and  for  the  redemption  or  funding  thereof,  and  for  funding 
the  floating  debt  of  the  United  States,"  approved  February 
twenty-five,  eighteen  hundred  and  sixty-two,  so  far  as  the  same 
can  or  may  be  applied  to  the  provisions  of  this  act,  and  not  in- 
consistent therewith,  shall  apply  to  the  notes  hereby  authorized 
to  be  issued. 

[Approved,  July  11, 1862.    12  Statutes  at  Large,  p.  532.] 

1861-62,  Chap.  CXCVI.  —  An  Act  to  authorize  Payments 
in  /Stamps,  and  to  prohibit  Circulation  of  Notes  of  less 
Denomination  than  One  Dollar. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
be,  and  he  is  hereby  directed  to  furnish  to  the  Assistant  Treas- 
urers, aud  such  designated  depositaries  of  the  United  States  aa 


170  LEGAL   TENDER   RESOLUTION.  [1863. 

may  be  by  him  selected,  in  such  sums  as  he  may  deem  expedient, 
the  postage  and  other  stamps  of  the  United  States,  to  be  ex- 
changed by  them,  on  application,  for  United  States  notes ;  and 
from  and  after  the  first  day  of  August  next  such  stamps  shall  be 
receivable  in  payment  of  all  dues  to  the  United  States  less  than 
five  dollars,  and  shall  be  received  in  exchange  for  United  States 
notes  when  presented  to  any  Assistant  Treasurer  or  any  desig- 
nated dapositary  selected  as  aforesaid  in  sums  not  less  than  five 
dollars. 

SEC.  2.  And  be  it  further  enacted,  That  from  and  after  the 
first  day  of  August,  eighteen  hundred  and  sixty-two,  no  private 
corporation,  banking  association,  firm,  or  individual  shall  make, 
issue,  circulate,  or  pay  any  note,  check,  memorandum,  token,  or 
other  obligation,  for  a  less  sum  than  one  dollar,  intended  to  cir- 
culate as  money  or  to  be  received  or  used  in  lieu  of  lawful 
money  of  the  United  States.  .  .  . 

[Approved,  July  17, 1862.    12  Statutes  at  Large,  592.] 

1862-63,  Resolution  No.  IX.  —  Joint  Resolution  to  provide 
for  the  immediate  Payment  of  the  Army  and  Navy  of 
the  United  States. 

Whereas  it  is  deemed  expedient  to  make  immediate  provision  for 
the  payment  of  the  army  and  navy  :  therefore, 

Be  it  resolved,  .  .  .  That  the  Secretary  of  the  Treasury  be, 
and  he  is  hereby,  authorized,  if  required  by  the  exigencies  of 
the  public  service,  to  issue  on  the  credit  of  the  United  States 
the  sum  of  one  hundred  millions  of  dollars  of  United  States 
notes,  in  such  form  as  he  may  deem  expedient,  not  bearing  in- 
terest, payable  to  bearer  on  demand,  and  of  such  denomina- 
tions not  less  than  one  dollar,  as  he  may  prescribe,  which  notes 
so  issued  shall  be  lawful  money  and  a  legal  tender,  like  the 
similar  notes  heretofore  authorized  in  payment  of  all  debts, 
public  and  private,  within  the  United  States,  except  for  duties  on 
imports  and  interest  on  the  public  debt ;  and  the  notes  so  issued 
shall  be  part  of  the  amount  provided  for  in  any  bill  now  pending 
for  the  issue  of  treasury  notes,  or  that  may  be  passed  hereafter 
by  this  Congress. 

[Approved,  January  17,  1863.    12  Statutes  at  Large,  p.  822.] 


1863.]  NATIONAL   BANK  ACT.  171 

1862-63,  Chap.  LVIII.  —  An  Act  to  provide  a  National 
Currency,  secured  by  a  Pledge  of  United  States  Stocks, 
and  to  provide  for  the  Circulation  and  Redemption 
thereof. 

[This  act  was  repealed  and  superseded  by  the  act  of  similar  title  ap- 
proved June  3,  1864,  but  with  so  little  change  in  its  leading  features  as 
to  make  it  sufficient  in  this  place  to  refer  to  the  note  appended  to  the  act 
of  1864,  where  the  principal  points  of  difference  are  recited,  and  to  ex- 
tract here  only  the  sections  providing  for  the  apportionment  of  the  bank 
circulation  and  for  the  issue  of  secured  notes  by  State  banks.] 

SEC.  17.  And  be  it  further  enacted.  That  the  entire  amount 
of  circulating  notes  to  be  issued  under  this  act  shall  not  ex- 
ceed three  hundred  millions  of  dollars.  One  hundred  and 
fifty  millions  of  which  sum  shall  be  apportioned  to  associa- 
tions in  the  States,  in  the  District  of  Columbia,  and  in  the 
Territories,  according  to  representative  population,  and  the 
remainder  shall  be  apportioned  by  the  Secretary  of  the  Treas- 
ury among  associations  formed  in  the  several  States,  in  the 
District  of  Columbia,  and  in  the  Territories,  having  due  regard 
to  the  existing  banking  capital,  resources,  and  business,  of 
such  States.  District,  and  Territories. 

SEC.  61.  And  be  it  further  enacted,  That  any  banking  as- 
sociation or  corporation  lawfully  in  existence  as  a  bank  of 
circulation  on  the  first  day  of  January,  Anno  Domini  eighteen 
hundred  and  sixty-three,  organized  in  any  state,  either  under 
a  special  act  of  incorporation  or  a  general  banking  law,  ma}', 
at  an}*  time  within years  after  the  passage  of  this  act  be- 
come an  association  under  the  provisions  of  this  act ;  that  in 
such  case  the  certificate  of  association  provided  for  by  this  act 
shall  be  signed  by  the  directors  of  such  banking  association 
or  corporation,  and  in  addition  to  the  specifications  required 
by  this  act,  shall  specify  that  such  directors  are  authorized  by 
the  owners  of  two-thirds  of  the  capital  stock  of  such  banking 
association  or  corporation,  to  make  such  certificate  of  associ- 
ation, and  such  certificate  of  association  shall  thereafter  have 
the  same  effect,  and  the  same  proceedings  shall  be  had  thereon, 
as  is  provided  for  as  to  other  associations  organized  under 
this  act.  And  such  association  or  corporation  thereafter  shall 


172        BANK  ACT:  SECURED  ISSUES  BY  SIATE  BANKS.    [18G3. 

have  the  same  powers  and  privileges,  and  shall  be  subject  to 
the  same  duties,  responsibilities,  and  rules,  in  all  respects,  as 
is  [are]  prescribed  in  this  act  for  other  associations  organized 
under  it,  and  shall  be  held  and  regarded  as  an  association 
under  this  act. 

SEC.  62.  And  be  it  further  enacted,  That  an}-  bank  or  bank- 
ing association,  authorized  by  any  State  law  to  engage  in  the 
business  of  banking,  and  duly  organized  under  such  State  law 
at  the  time  of  the  passage  of  this  act,  and  which  shall  be  the 
holder  and  owner  of  United  States  bonds  to  the  amount  of 
fifty  per  centum  of  its  capital  stock,  may  transfer  and  deliver 
to  the  treasurer  of  the  United  States  such  bonds,  or  any  part 
thereof,  in  the  manner  provided  b}'  this  act ;  and  upon  making 
such  transfer  and  delivery,  such  bank  or  banking  association 
shall  be  entitled  to  receive  from  the  comptroller  of  the  cur- 
rencj7,  circulating  notes,  as  herein  provided,  equal  in  amount 
to  eighty  per  centum  of  the  amount  of  the  bonds  so  transferred 
and  delivered. 

SEC.  63.  And  be  it  further  enacted,  That  upon  the  failure 
of  any  such  State  bank  or  banking  association,  to  redeem  any 
of  its  circulating  notes  issued  under  the  provisions  of  the  pre- 
ceding section,  the  comptroller  of  the  currency  shall,  when 
satisfied  that  such  default  has  been  made,  and  within  thirty 
days  after  notice  of  such  default,  proceed  to  declare  the  bonds 
transferred  and  delivered  to  the  treasurer,  forfeited  to  the 
United  States,  and  the  same  shall  thereupon  be  forfeited  ac- 
cordingl}*.  And  thereupon  the  circulating  notes  which  have 
been  issued  by  such  bank  or  banking  association  shall  be  re- 
deemed and  paid  at  the  treasury  of  the  United  States,  in  the 
same  manner  as  other  circulating  notes  issued  under  the  pro- 
visions of  this  act  are  redeemed  and  paid. 

SEC.  64.  And  be  it  further  enacted,  That  the  bonds  for- 
feited, as  provided  in  the  last  preceding  section,  may  be  can- 
celled to  an  amount  equal  to  the  circulating  notes  redeemed 
and  paid,  or  such  bonds  may  be  sold,  under  the  direction  of 
the  Secretary  of  the  Treasury,  and  after  retaining  out  of  the 
proceeds  a  sum  sufficient  to  pay  the  whole  amount  of  circu- 
lating notes,  for  the  redemption  of  which  such  bonds  are  held, 


1863.]  NINE   HUNDRED   MILLION   LOAN.  173 

the  surplus,  if  any  remains,  shall  be  paid  to  the  bank,  or 
banking  association  from  which  such  bonds  were  received. 

SEC.  65.  And  be  it  further  enacted,  That  Congress  re- 
serves the  right,  at  any  time,  to  amend,  alter,  or  repeal  this 

act. 

[Approved,  February  25,  1863.    12  Statutes  at  Large,  665.] 

1862-63,  Chap.  LXXIII.  —  An  Act  to  provide  Ways  and 
Means  for  the  Support  of  the  Government. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury 
be,  and  he  is  hereby,  authorized  to  borrow,  from  time  to  time,  on 
the  credit  of  the  United  States,  a  sum  not  exceeding  three 
hundred  millions  of  dollars  for  the  current  fiscal  year,  and  six 
hundred  millions  for  the  next  fiscal  year,  and  to  issue  therefor 
coupon  or  registered  bonds,  payable  at  the  pleasure  of  the  gov- 
ernment after  such  periods  as  may  be  fixed  by  the  Secretary, 
not  less  than  ten  nor  more  than  forty  years  from  date,  in  coin, 
and  of  such  denominations  not  less  than  fifty  dollars,  as  he  may 
deem  expedient,  bearing  interest  at  a  rate  not  exceeding  six  per 
centum  per  annum,  payable  on  bonds  not  exceeding  one  hundred 
dollars,  annually,  and  on  all  other  bonds  semi-annually,  in  coin ; 
and  he  may  in  his  discretion  dispose  of  such  bonds  at  any  time, 
upon  such  terms  as  he  may  deem  most  advisable,  for  lawful 
money  of  the  United  States,  or  for  any  of  the  certificates  of  in- 
debtedness or  deposit  that  may  at  any  time  be  unpaid,  or  for  any 
of  the  treasury  notes  heretofore  issued  or  which  may  be  issued 
under  the  provisions  of  this  act.  And  all  the  bonds  and  treas- 
ury notes  or  United  States  notes  issued  under  the  provisions  oi 
this  act  shall  be  exempt  from  taxation  by  or  under  State  or  mu- 
nicipal authority :  Provided,  That  there  shall  be  outstanding  oi 
bonds,  treasury  notes,  and  United  States  notes,  at  any  time, 
issued  under  the  provisions  of  this  act,  no  greater  amount  alto- 
gether than  the  sum  of  nine  hundred  millions  of  dollars. 

SEC.  2.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  be,  and  he  is  hereby,  authorized  to  issue,  on  the  credit 
of  the  United  States,  four  hundred  millions  of  dollars  in  treas- 
ury notes,  payable  at  ths  pleasure  of  the  United  States,  or  al 


174  THIRD  LEGAL  TENDER  ACT.  [1863. 

such  time  or  times  not  exceeding  three  years  from  date,  as  may 
be  found  most  beneficial  to  the  public  interest,  and  bearing  in- 
terest at  a  rate  not  exceeding  six  per  centum  per  annum,  payable 
at  periods  expressed  on  the  face  of  said  treasury  notes ;  and  the 
interest  on  the  said  treasury  notes  and  on  certificates  of  indebt- 
edness and  deposit  hereafter  issued,  shall  be  paid  in  lawful  money. 
The  treasury  notes  thus  issued  shall  be  of  such  denomination 
as  the  Secretary  may  direct,  not  less  than  ten  dollars,  and  may 
be  disposed  of  on  the  best  terms  that  can  be  obtained,  or  may 
be  paid  to  any  creditor  of  the  United  States  willing  to  receive 
the  same  at  par.  And  said  treasury  notes  may  be  made  a  legal 
tender  to  the  same  extent  as  United  States  notes,  for  their  face 
value  excluding  interest;  or  they  maybe  made  exchangeable 
under  regulations  prescribed  by  the  Secretary  of  the  Treasury, 
by  the  holder  thereof,  at  the  Treasury  iu  the  city  of  Washington, 
or  at  the  office  of  any  Assistant  Treasurer  or  depositary  designated 
for  that  purpose,  for  United  States  notes  equal  in  amount  to  the 
treasury  notes  offered  for  exchange,  together  with  the  interest 
accrued  and  due  thereon  at  the  date  of  interest  payment  next 
preceding  such  exchange.  And  in  lieu  of  any  amount  of  said 
treasury  notes  thus  exchanged,  or  redeemed  or  paid  at  maturity, 
the  Secretary  may  issue  an  equal  amount  of  other  treasury 
notes ;  and  the  treasury  notes  so  exchanged,  redeemed,  or  paid, 
shall  be  cancelled  and  destroyed  as  the  Secretary  may  direct. 
In  order  to  secure  certain  and  prompt  exchanges  of  United 
States  notes  for  treasury  notes,  when  required  as  above  pro- 
vided, the  Secretary  shall  have  power  to  issue  United  States 
notes  to  the  amount  of  one  hundred  and  fifty  millions  of  dollars, 
which  may  be  used  if  necessary  for  such  exchanges;  but  no 
part  of  the  United  States  notes  authorized  by  this  section  shall 
be  issued  for  or  applied  to  any  other  purposes  than  said  ex- 
changes ;  and  whenever  any  amount  shall  have  been  so  issued 
and  applied,  the  same  shall  be  replaced  as  soon  as  practicable 
from  the  sales  of  treasury  notes  for  United  States  notes. 

SEC.  3.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  be,  and  he  is  hereby,  authorized,  if  required  by  the  ex- 
igencies of  the  public  service,  for  the  payment  of  the  army  and 
navy,  and  other  creditors  of  the  government,  to  issue  on  the 


1863.]  FRACTIONAL  CURRENCY.  175 

credit  of  the  United  States  the  sum  of  one  hundred  and  fifty 
millions  of  dollars  of  United  States  notes,  including  the  amount  of 
such  notes  heretofore  authorized  by  the  joint  resolution  approved 
January  seventeen,  eighteen  hundred  and  sixty-three,  in  such 
form  as  he  may  deem  expedient,  not  bearing  interest,  payable  to 
bearer,  and  of  such  denominations,  not  less  than  one  dollar,  as 
he  may  prescribe,  which  notes  so  issued  shall  be  lawful  money 
and  a  legal  tender  in  payment  of  all  debts,  public  and  private, 
within  the  United  States,  except  for  duties  on  imports  and  in- 
terest on  the  public  debt ;  and  any  of  the  said  notes,  when  re- 
turned to  the  Treasury,  may  be  re-issued  from  time  to  time  as 
the  exigencies  of  the  public  service  may  require.  And  in  lieu 
of  any  of  said  notes,  or  any  other  United  States  notes,  returned 
to  the  Treasury,  and  cancelled  or  destroyed,  there  may  be  issued 
equal  amounts  of  United  States  notes,  such  as  are  authorized 
by  this  act.  And  so  much  of  the  act  to  authorize  the  issue  of 
United  States  notes,  and  for  other  purposes,  approved  Feb- 
ruary twenty-five,  eighteen  hundred  and  sixty-two,  and  of  the 
act  to  authorize  an  additional  issue  of  United  States  notes,  and 
for  other  purposes,  approved  July  eleven,  eighteen  hundred  and 
sixty-two,  as  restricts  the  negotiation  of  bonds  to  market  value, 
is  hereby  repealed.  And  the  holders  of  United  States  notes, 
issued  under  and  by  virtue  of  said  acts,  shall  present  the  same 
for  the  purpose  of  exchanging  the  same  for  bonds,  as  therein  pro- 
vided, on  or  before  the  first  day  of  July,  eighteen  hundred  and 
sixty-three,  and  thereafter  the  right  so  to  exchange  the  same 
shall  cease  and  determine. 

SEC.  4.  And  be  it  further  enacted,  That  in  lieu  of  postage  and 
revenue  stamps  for  fractional  currency,  and  of  fractional  notes, 
commonly  called  postage  currency,  issued  or  to  be  issued,  the 
Secretary  of  the  Treasury  may  issue  fractional  notes  of  like 
amounts  in  such  form  as  he  may  deem  expedient,  and  may  pro- 
vide for  the  engraving,  preparation  and  issue  thereof,  in  the 
Treasury  Department  building.  And  all  such  notes  issued  shall 
he  exchangeable  by  the  Assistant  Treasurers  and  designated  de- 
positaries for  United  States  notes,  in  sums  not  less  than  three 
dollars,  and  shall  be  receivable  for  postage  and  revenue  stamps, 
and  also  in  payment  of  any  dues  to  the  United  States  less  than 


176  TEMPORARY   DEPOSITS    OF   GOLD.  [1863. 

five  dollars,  except  duties  on  imports,  and  shall  be  redeemed  ou 
presentation  at  the  Treasury  of  the  United  States  in  such  sums 
and  under  such  regulations  as  the  Secretary  of  the  Treasury 
shall  prescribe;  Provided,  That  the  whole  amount  of  fractional 
currency  issued,  including  postage  and  revenue  stamps  issued  aa 
currency,  shall  not  exceed  fifty  millions  of  dollars. 

SEC.  5.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized  to  receive  deposits  of  gold  coin 
and  bullion  with  the  Treasurer  or  any  Assistant  Treasurer  of  the 
United  States,  in  sums  not  less  than  twenty  dollars,  and  to  issue 
certificates  therefor,  in  denominations  of  not  less  than  twenty 
dollars  each,  corresponding  with  the  denominations  of  the  United 
States  notes.  The  coin  and  bullion  deposited  for  or  representing 
the  certificates  of  deposit  shall  be  retained  in  the  Treasury  for 
the  payment  of  the  same  on  demand.  And  certificates  repre- 
senting coin  in  the  Treasury  may  be  issued  in  payment  of  in- 
terest on  the  public  debt,  which  certificates,  together  with  those 
issued  for  coin  and  bullion  deposited,  shall  not  at  any  time  ex- 
ceed twenty  per  centum  beyond  the  amount  of  coin  and  bullion 
in  the  Treasury ;  and  the  certificates  for  coin  or  bullion  in  the 
Treasury  shall  be  received  at  par  in  payment  for  duties  on 
imports. 

[Section  7,  after  providing  for  taxes  to  be  laid  upon  the  circulation  of 
all  banks  and  corporations,  whether  established  under  state  laws  or  under 
the  act  of  February  25,  1863,  directs  that  all  banks,  corporations,  or  in- 
dividuals issuing  notes  for  any  fractional  part  of  a  dollar  after  April  1, 
1863,  shall  be  taxed  ten  per  cent,  per  annum  upon  the  amount  of  such 
fractional  notes.] 

[Approved,  March  3,  1863.     12  Statutes  at  Large,  709.] 

1862-63,  Chap.  LXXIV.  —  An  Act  to  amend  an  Act  enti- 
tled "An  Act  to  provide  Internal  Revenue  to  support 
the  Government  and  pay  Interest  on  the  Public  Debt" 
approved  July  first,  eighteen  hundred  and  sixty-two, 
and  for  other  Purposes. 

[Section  4,  after  prescribing  that  all  contracts  for  the  purchase  or  sale 
of  coin  or  bullion,  and  all  contracts  for  loans  upon  the  pledge  thereof,  if 
to  be  performed  after  a  period  exceeding  three  days,  shall  be  in  writing 
and  shall  be  taxed,  provides  as  follows :] 


1864.]  SUPPLEMENTARY  LOAN  ACT.  177 

And  no  loan  of  currency  or  money  on  the  securit}'  of  gold 
or  silver  coin  of  the  United  States,  as  aforesaid,  or  of  an}- 
certificate  or  other  evidence  of  deposit  payable  in  gold  or 
silver  coin,  shall  be  made  exceeding  in  amount  the  par  value 
of  the  coin  pledged  or  deposited  as  security  ;  and  any  such 
loan  so  made,  or  attempted  to  be  made,  shall  be  utterly  void  : 
Provided,  That  if  gold  or  silver  coin  be  loaned  at  its  par 
value  it  shall  be  subject  only  to  the  duty  imposed  on  other 
loans :  Provided,  however,  That  nothing  herein  contained 
shall  apply  to  any  transaction  by  or  with  the  government  of 
the  United  States. 

[Approved,  March  3,  1863.     12  Statutes  at  Large,  719  ] 

1863-64,  Chap.  XVII.  —  An  Act  supplementary  to  an  Act 
entitled  "An  Act  to  provide  Ways  and  Means  for  the 
Support  of  the  Government,"  approved  March  third, 
eighteen  hundred  and  sixty-three. 

Be  it  enacted,  .  .  .  That,  in  lieu  of  so  much  of  the  loan 
authorized  b}'  the  act  of  March  third,  eighteen  hundred  and 
sixty-three,  to  which  this  is  supplementary,  the  Secretary  of 
the  Treasury  is  authorized  to  borrow,  from  time  to  time,  on 
the  credit  of  the  United  States,  not  exceeding  two  hundred 
millions  of  dollars  during  the  current  fiscal  year,  and  to  pre- 
pare and  issue  therefor  coupon  or  registered  bonds  of  the 
United  States,  bearing  date  March  first,  eighteen  hundred 
and  sixty-four,  or  any  subsequent  period,  redeemable  at  the 
pleasure  of  the  Government  after  any  period  not  less  than 
five  j-ears,  and  pa}*able  at  any  period  not  more  than  fort}' 
years  from  date,  in  coin,  and  of  such  denominations  as  may 
be  found  expedient,  not  less  than  fifty  dollars,  bearing  inter- 
est not  exceeding  six  per  centum  a  year,  payable  on  bonds 
not  over  one  hundred  dollars,  annually,  and  on  all  other  bonds 
semi-annually,  in  coin  ;  and  he  may  dispose  of  such  bonds  at 
any  time,  on  such  terms  as  he  may  deem  most  advfsable,  for 
lawful  money  of  the  United  States,  or,  at  his  discretion,  for 
Treasury  notes,  certificates  of  indebtedness,  or  certificates  of 
deposit,  issued  under  any  act  of  Congress  ;  arid  all  bonds  is- 
sued under  this  act  shall  be  exempt  from  taxation  by  or  under 
State  or  municipal  authority. 


178  BANK  ACT:  THE  COMPTROLLER.  [18G4. 

[Section  2  authorizes  the  Secretary  of  the  Treasury  to  issue  bonds 
under  the  Act  of  February  25,  1862,  in  excess  of  five  hundred  millions  of 
dollars,  to  the  amount  of  eleven  millions,  to  such  persons  as  subscribed 
for  them  on  or  before  January  21,  1864,  and  have  paid  for  them.] 

[Approved,  March  3,  1864.     13  Statutes  at  Large,  13.] 

1863-64,  Resolution  No.  XX.  —  Joint  Resolution  to  authorize 
the  Secretary  of  the  Treasury  to  anticipate  the  Payment 
of  Interest  on  the  Public  Debt,  and  for  other  Purposes. 
Be  it  resolved,  .  .  .  That  the  Secretary  of  the  Treasury  be 
authorized  to  anticipate  the  payment  of  interest  on  the  publi  . 
debt,  by  a  period  not  exceeding  one  year,  from  time  to  time, 
either  with  or  without  a  rebate  of  interest  upon  the  coupons,  as 
to  him  may  seem  expedient ;  and  he  is  hereby  authorized  to  dis- 
pose of  any  gold  in  the  Treasury  of  the  United  States  not  nec- 
essary for  the  payment  of  interest  of  the  public  debt :  Provided, 
That  the  obligation  to  create  the  sinking  fund  according  to  the 
Act  of  February  twenty-fifth,  eighteen  hundred  and  sixty-two, 
shall  not  be  impaired  thereby. 

[Approved,  March  17,  1864.    13  Statutes  at  Large,  404.] 

1863-64,  Chap.  CVI.  —  An  Act  to  provide  a  National  Cur- 
rency^ secured  by  a  Pledge  of  United  States  Bonds,  and 
to  provide  for  the  Circulation  and  Redemption  thereof. 

Be  it  enacted,  .  .  .  That  there  shall  be  established  in  the 
Treasury  Department  a  separate  bureau,  which  shall  be  charged 
with  the  execution  of  this  and  all  other  laws  that  may  be  passed 
by  Congress  respecting  the  issue  and  regulation  of  a  national 
currency  secured  by  United  States  bonds.  The  chief  officer  of 
the  said  bureau  shall  be  denominated  the  Comptroller  of  the 
Currency,  and  shall  be  under  the  general  direction  of  the  Secre- 
tary of  the  Treasury.  He  shall  be  appointed  by  the  President, 
on  the  recommendation  of  the  Secretary  of  the  Treasury,  by 
and  with  the  advice  and  consent  of  the  Senate,  and  shall  hold 
his  office  for  the  term  of  five  years  unless  sooner  removed  by 
the  President,  upon  reasons  to  be  communicated  by  him  to  the 
Senate;  he  shall  receive  an  annual  salary  of  five  thousand 
dollars.  .  .  . 

[He  shall  give  a  bond  in  the  penalty  of  §100,000  for  the  faithful  dis- 
charge of  his  duties  j  shall  have  a  competent  deputy,  who  shall  give  a 


1864.]  BANK  ACT:  CAPITAL.  179 

like  bond  for  $50,000;  and  neither  the  Comptroller  nor  the  Deputy- 
Comptroller  shall  "  be  interested "  in  any  association  issuing  currency 
under  the  provisions  of  this  act. 

Section  6  provides  that  an  association  for  carrying  on  the  business  of 
banking  may  be  formed  by  any  number  of  persons  not  less  than  five, 
who  shall  enter  into  articles  stating  the  object  of  the  association  and 
containing  provisions  for  regulating  its  business  not  inconsistent  with 
this  act.  A  copy  of  these  articles  must  be  forwarded  to  the  Comptroller, 
together  with  a  certificate  of  organization,  specifying  the  name  of  the 
association,  which  shall  be  subject  to  the  approval  of  the  Comptroller, 
the  place  where  it  is  located,  the  amount  of  its  capital,  and  the  names 
and  residences  of  its  stockholders.  But  the  association  shall  not  begin 
the  business  of  banking  until  it  is  authorized  by  the  Comptroller.  It 
shall  be  a  body- corporate  from  the  date  of  its  organization-certificate, 
and  shall  continue  for  twenty  years  unless  sooner  dissolved  under  the 
provisions  of  this  act,  and  shall  have  all  such  incidental  powers  as  are 
necessary  to  carry  on  the  business  of  banking,  by  discounting,  receiving 
deposits,  lending  money  on  personal  security,  buying  and  selling  ex- 
change, coin  and  bullion,  and  issuing  and  circulating  notes  under  the 
provisions  of  this  act.] 

SEC.  7.  And  be  it  further  enacted,  That  no  association  shall 
be  organized  under  this  act,  with  a  less  capital  than  one  hundred 
thousand  dollars,  nor  in  a  city  whose  population  exceeds  fifty 
thousand  persons,  with  a  less  capital  than  two  hundred  thousand 
dollars :  Provided,  That  banks  with  a  capital  of  not  less  than 
fifty  thousand  dollars  may,  with  the  approval  of  the  Secretary 
of  the  Treasury,  be  organized  in  any  place  the  population  of 
which  does  not  exceed  six  thousand  inhabitants. 

[Every  association  is  to  be  managed  by  not  less  than  five  directors, 
one  of  whom  shall  be  its  president ;  every  director  must  own  at  least  ten 
shares  of  the  capital  stock  in  his  own  right  and  in  no  way  pledged  for 
any  debt ;  all  elections  of  directors,  after  the  first,  are  to  be  held  an- 
nually in  the  month  of  January  ;  every  shareholder  is  to  have  one  vote 
for  every  share  of  the  stock  owned  by  him ;  but  no  shareholder  whose 
liability  is  past  due  and  unpaid  is  to  be  allowed  to  vote.] 

SEC.  12.  And  be  it  further  enacted,  That  the  capital  stock  of 
any  association  formed  under  this  act  shall  be  divided  into  shares 
of  one  hundred  dollars  each,  and  be  deemed  personal  property 
and  transferable  on  the  books  of  the  association  in  such  manner 
as  may  be  prescribed  in  the  by-laws  or  articles  of  association. 
.  .  .  The  shareholders  of  each  association  formed  under  the  pro- 
visions of  this  act,  and  of  each  existing  bank  or  banking  asso« 


180  BANK   ACT:    DEPOSIT   OF    BONDS.  [1864. 

ciation  that  may  accept  the  provisions  of  this  act,  shall  be  held 
individually  responsible,  equally  and  ratnhly,  and  not  one  for 
another,  for  all  contracts,  debts,  and  engagements  of  such  asso- 
ciation to  the  extent  of  the  amount  of  their  stock  therein  at  the 
par  value  thereof,  in  addition  to  the  amount  invested  in  such 
shares.  .  .  . 

[But  shareholders  of  any  banking  association  now  existing  under 
State  laws,  having  not  less  than  five  millions  of  capital  and  a  surplus  of 
twenty  per  cent,  on  hand,  shall  be  liable  only  to  the  amount  invested  in 
their  shares  ;  but  said  surplus  shall  be  in  addition  to  that  elsewhere  re- 
quired by  this  act,  and  shall  be  kept  undiminished. 

Section  13  provides  that  any  association  may  increase  its  capital  or 
may  diminish  the  same,  subject  to  the  approval  of  the  Comptroller.] 

SEC.  14.  And  be  it  further  enacted,  That  at  least  fifty  per 
centum  of  the  capital  stock  of  every  association  shall  be  paid  in 
before  it  shall  be  authorized  to  commence  business  ;  and  the  re- 
mainder of  the  capital  stock  of  such  association  shall  be  paid  in 
instalments  of  at  least  ten  per  centum  each  on  the  whole  amount 
of  the  capital  as  frequently  as  one  instalment  at  the  end  of  each 
succeeding  month  from  the  time  it  shall  be  authorized  by  the 
Comptroller  to  commence  business ;  and  the  payment  of  each 
instalment  shall  be  certified  to  the  Comptroller,  under  oath,  by 
the  president  or  cashier  of  the  association. 

SEC.  16.  And  be  it  further  enacted,  That  every  association, 
after  having  complied  with  the  provisions  of  this  act,  preliminaiy 
to  the  commencement  of  banking  business  under  its  provisions, 
and  before  it  shall  be  authorized  to  commence  business,  shall  trans- 
fer and  deliver  to  the  Treasurer  of  the  United  States  any  United 
States  registered  bonds  bearing  interest  to  an  amount  not  less 
than  thirty  thousand  dollars  nor  less  than  one  third  of  the  capital 
stock  paid  in,  which  bonds  shall  be  deposited  with  the  Treasurer 
of  the  United  States  and  by  him  safely  kept  in  his  office  until  the 
same  shall  be  otherwise  disposed  of,  in  pursuance  of  the  provi- 
sions of  this  act.  .  .  .  And  the  deposit  of  bonds  shall  be,  by  every 
association,  increased  as  its  capital  may  be  paid  up  or  increased,  so 
that  every  association  shall  at  all  times  have  on  deposit  with  the 
Treasurer  registered  United  States  bonds  to  the  amount  of  at 
least  one  third  of  its  capital  stock  actually  paid  in :  Provided, 


1864.]  BANK  ACT:  CIRCULATING  NOTES.  181 

That  nothing  in  this  section  shall  prevent  an  association  that 
may  desire  to  reduce  its  capital  or  to  close  up  its  business  and 
dissolve  its  organization  from  taking  up  its  bonds  upon  returning 
to  the  Comptroller  its  circulating  notes  in  the  proportion  here- 
inafter named  in  this  act,  nor  from  taking  up  any  excess  of 
bonds  beyond  one  third  of  its  capital  stock  and  upon  which  no 
circulating  notes  have  been  delivered. 

SEC.  21.  And  be  it  further  enacted,  That -upon  the  transfer 
and  delivery  of  bonds  to  the  Treasurer,  as  provided  in  the  fore- 
going section,  the  association  making  the  same  shall  be  entitled 
to  receive  from  the  Comptroller  of  the  Currency  circulating 
notes  of  different  denominations,  in  blank,  registered  and  coun- 
tersigned as  hereinafter  provided,  equal  in  amount  to  ninety  per 
centum  of  the  current  market  value  of  the  United  States  bonds 
so  transferred  and  delivered,  but  not  exceeding  ninety  per  cen- 
tum of  the  amount  of  said  bonds  at  the  par  value  thereof,  if 
bearing  interest  at  a  rate  not  less  than  five  per  centum  per  an- 
num ;  and  at  no  time  shall  the  total  amount  of  such  notes,  issued 
to  any  such  association,  exceed  the  amount  at  such  time  actually 
paid  in  of  its  capital  stock. 

SEC.  22.  And  lie  it  further  enacted.  That  the  entire  amount 
of  notes  for  circulation  to  be  issued  under  this  act  shall  not  ex- 
ceed three  hundred  millions  of  dollars.  In  order  to  furnish 
suitable  notes  for  circulation,  the  Comptroller  of  the  Currency 
is  hereby  authorized  and  required,  under  the  direction  of  the 
Secretary  of  the  Treasury,  to  cause  plates  and  dies  to  be  en- 
graved, in  the  best  manner  to  guard  against  counterfeiting  and 
fraudulent  alterations,  and  to  have  printed  therefrom,  and  num- 
bered, such  quantity  of  circulating  notes,  in  blank,  of  the  denom- 
inations of  one  dollar,  two  dollars,  three  dollars,  five  dollars, 
ten  dollars,  twenty  dollars,  fifty  dollars,  one  hundred  dollars,  five 
hundred  dollars,  and  one  thousand  dollars,  as  may  be  required 
to  supply,  under  this  act,  the  associations  entitled  to  receive  the 
same  ;  which  notes  shall  express  upon  their  face  that  they  are 
secured  by  United  States  bonds,  deposited  with  the  Treasurer 
of  the  United  States  by  the  written  or  engraved  signatures  of 
the  Treasurer  and  Register,  and  by  the  imprint  of  the  seal  of 
the  Treasury  ;  and  shall  also  express  upon  their  face  the  prom- 


182  BANK  ACT:  NOTES  TO  BE  RECEIVABLE.         [1864. 

ise  of  the  association  receiving  the  same  to  pay  on  demand,  at- 
tested by  the  signatures  of  the  president  or  vice-president  and 
cashier.  And  the  said  notes  shall  bear  such  devices  and  such 
other  statements,  and  shall  be  in  sucji  form,  as  the  Secretary 
of  the  Treasury  shall,  by  regulation,  direct:  Provided,  That 
not  more  than  one-sixth  part  of  the  notes  furnished  to  an  asso- 
ciation shall  be  of  a  less  denomination  than  five  dollars,  and 
that  after  specie  payments  shall  be  resumed  no  association 
shall  be  furnished  with  notes  of  a  less  denomination  than  five 
dollars. 

SEC.  23.  And  be  it  further  enacted,  That  after  any  such  as- 
sociation shall  have  caused  its  promise  to  pay  such  notes  on  de- 
mand to  be  signed  by  the  president  or  vice-president  and  cashier 
thereof,  in  such  manner  as  to  make  them  obligatory  promissory 
notes,  payable  on  demand,  at  its  place  of  business,  such  associa- 
tion is  hereby  authorized  to  issue  and  circulate  the  same  as 
money  ;  and  the  same  shall  be  received  at  par  in  all  parts  of  the 
United  States  in  payment  of  taxes,  excises,  public  lands,  and  all 
other  dues  to  the  United  States,  except  for  duties  on  imports ; 
and  also  for  all  salaries  and  other  debts  and  demands  owing  by 
the  United  States  to  individuals,  corporations,  and  associations 
within  the  United  States,  except  interest  on  the  public  debt,  and 
in  redemption  of  the  national  currency.  And  no  such  associa- 
tion shall  issue  post  notes  or  any  other  notes  to  circulate  as 
money  than  such  as  are  authorized  by  the  foregoing  provisions 
of  this  act. 

[Section  24  provides  that  the  Comptroller  shall  receive  the  worn-out 
or  mutilated  notes  of  any  association,  and  shall  deliver  to  it  fresh  notes 
in  place  thereof,  and  that  the  worn-out  or  mutilated  notes  shall  be  burned 
in  presence  of  four  persons,  appointed  by  the  Secretary  of  the  Treasury, 
the  Comptroller,  the  Treasurer  of  the  United  States  and  the  association, 
respectively.] 

SEC.  26.  Andbeit  further  enacted,  That  the  bonds  transferred 
to  and  deposited  with  the  Treasurer  of  the  United  States,  as 
hereinbefore  provided,  by  any  banking  association  for  the  secu- 
rity of  its  circulating  notes,  shall  be  held  exclusively  for  that 
purpose,  until  such  notes  shall  be  redeemed,  except  as  provided 
in  this  act ;  but  the  Comptroller  of  the  Currency  shall  give  to 


1864.]  BANK  ACT:  KATE  OF  INTEREST.  183 

any  such  banking  association  powers  of  attorney  to  receive  and 
appropriate  to  its  own  use  the  interest  on  the  bonds  which  it 
-shall  have  so  transferred  to  the  Treasurer ;  but  such  powers 
shall  become  inoperative  whenever  such  banking  association  shall 
fail  to  redeem  its  circulating  notes  as  aforesaid.  "Whenever 
the  market  or  cash  value  of  any  bonds  deposited  with  the  Treas- 
urer of  the  United  States,  as  aforesaid,  shall  be  reduced  below 
the  amount  of  the  circulation  issued  for  the  same,  the  Comp- 
troller of  the  Currency  is  hereby  authorized  to  demand  and  re- 
ceive the  amount  of  such  depreciation  in  other  United  States 
bonds  at  cash  value,  or  in  money,  from  the  association  receiving 
said  bills,  to  be  deposited  with  the  Treasurer  of  the  United 
States  as  long  as  such  depreciation  continues. 

[And  the  Comptroller  may  permit  the  exchange  of  any  of  the  bonds 
so  deposited  for  other  bonds  of  the  United  States,  or  the  return  of  any 
of  them  upon  the  surrender  and  cancellation  of  a  proportionate  amount 
of  the  circulating  notes  ;  prodded,  the  remaining  bonds  are  sufficient  for 
the  requirements  of  this  act,  and  the  association  has  not  failed  to  redeem 
its  circulating  notes. 

Section  28  forbids  any  association  to  hold  real  estate,  except  such  as 
may  be  necessary  for  its  accommodation  in  its  business,  or  may  be  mort- 
gaged to  it  as  security  for  debts  previously  contracted,  or  conveyed  to  it 
in  satisfaction  thereof,  or  may  be  purchased  by  it  in  order  to  secure  debts 
due  to  it ;  or  to  hold  possession  under  a  mortgage,  or  to  retain  real 
estate  purchased  to  secure  debts,  for  more  than  five  years.] 

SEC.  29.  And  be  it  further  enacted,  That  the  total  liabilities 
to  any  association,  of  any  person,  or  of  any  company,  corpora- 
tion, or  firm  for  money  borrowed,  including  in  the  liabilities  of  a 
company  or  firm  the  liabilities  of  the  several  members  thereof, 
shall  at  no  time  exceed  one  tenth  part  of  the  amount  of  the 
capital  stock  of  such  association  actually  paid  in :  Provided, 
that  the  discount  of  bond  fide  bills  of  exchange  drawn  against 
actually  existing  values,  and  the  discount  of  commercial  or 
business  paper  actually  owned  by  the  person  or  persons,  cor- 
poration, or  firm  negotiating  the  same  shall  not  be  considered  as 
money  borrowed. 

[Section  30  authorizes  every  association  to  charge  upon  loans  or  dis- 
counts made  by  it  the  rate  of  interest  which  the  law  of  the  State  where 
it  is  established  allows  banks,  organized  under  State  laws,  to  charge; 
»nd,  where  no  rate  is  fixed  by  the  law  of  the  State,  to  charge  a  rate  not 


184  BANK  ACT:  RESERVES.  [1864. 

exceeding  seven  per  cent.  But  the  purchase  or  sale  of  a  bondjide  bill  of 
exchange,  payable  at  another  place,  at  not  more  than  the  current  rate  of 
exchange  in  addition  to  the  interest,  shall  not  be  considered  as  taking  a 
greater  rate  of  interest.] 

SEC.  31.  And  be  it  further  enacted,  That  every  association  in 
the  cities  hereinafter  named  shall,  at  all  times,  have  on  hand,  in 
lawful  money  of  the  United  States,  an  amount  equal  to  at  least 
twenty-five  per  centum  of  the  aggregate  amount  of  its  notes  in 
circulation  and  its  deposits  ;  and  every  other  association  shall, 
at. all  times,  have  on  hand,  in  lawful  money  of  the  United  States, 
an  amount  equal  to  at  least  fifteen  per  centum  of  the  aggregate 
amount  of  its  notes  in  circulation,  and  of  its  deposits.  And  when- 
ever the  lawful  money  of  any  association  in  any  of  the  cities 
hereinafter  named  thall  be  below  the  amount  of  twenty-five  per 
centum  of  its  circulation  and  deposits,  and  whenever  the  lawful 
money  of  any  other  association  shall  be  below  fifteen  per  cen- 
tum of  its  circulation  and  deposits,  such  association  shall  not 
increase  its  liabilities  by  making  any  new  loans  or  discounts 
otherwise  than  by  discounting  or  purchasing  bills  of  exchange 
payable  at  sight,  nor  make  any  dividend  of  its  profits  until  the 
required  proportion  between  the  aggregate  amount  of  its  out- 
standing notes  of  circulation  and  deposits  and  its  lawful  money 
of  the  United  States  shall  be  restored :  Provided,  That  three 
fifths  of  said  fifteen  per  centum  may  consist  of  balances  due  to 
an  association  available  for  the  redemption  of  its  circulating 
notes  from  associations  approved  by  the  Comptroller  of  the 
Currency,  organized  under  this  act,  in  the  cities  of  Saint  Louis, 
Louisville,  Chicago,  Detroit,  Milwaukie,  New  Orleans,  Cincin- 
nati, Cleveland,  Pittsburg,  Baltimore,  Philadelphia,  Boston,  New 
York,  Albany,  Leavenworth,  San  Francisco,  and  Washington 
City  :  Provided,  also,  That  clearing-house  certificates,  represent- 
ing specie  or  lawful  money  specially  deposited  for  the  purpose 
of  any  clearing-house  association,  shall  be  deemed  to  be  lawful 
money  in  the  possession  of  any  association  belonging  to  such 
clearing-house  holding  and  owning  such  certificate,  and  shall  be 
considered  to  be  a  part  of  the  lawful  money  which  such  associa- 
tion is  required  to  have  under  the  foregoing  provisions  of  this 
section :  Provided,  That  the  cities  of  Charleston  and  Richmond 


1864.]  BANK  ACT:  REDEMPTION  OF  NOTES.  185 

may  be  added  to  the  list  of  cities  in  the  national  associations  ol 
which  other  associations  may  keep  three  fifths  of  their  lawful 
money,  whenever,  in  the  opinion  of  the  Comptroller  of  the 
Currency,  the  condition  of  the  Southern  States  will  warrant  it. 
And  it  shall  be  competent  for  the  Comptroller  of  the  Currency 
to  notify  any  association,  whose  lawful  money  reserve  as  afore- 
said shall  be  below  the  amount  to  be  kept  on  hand  as  aforesaid, 
to  make  good  such  reserve ;  and  if  such  association  shall  fail  for 
thirty  days  thereafter  so  to  make  good  its  reserve  of  lawful 
money  of  the  United  States,  the  Comptroller  may,  with  the  con- 
currence of  the  Secretary  of  the  Treasury,  appoint  a  receiver 
to  wind  up  the  business  of  such  association,  as  provided  in  this 
act. 

SEC.  32.  And  be  it  further  enacted,  That  each  association  or- 
ganized in  any  of  the  cities  named  in  the  foregoing  section  shall 
select,  subject  to  the  approval  of  the  Comptroller  of  the  Cur- 
rency, an  association  in  the  city  of  New  York,  at  which  it  will 
redeem  its  circulating  notes  at  par.  And  each  of  such  associa- 
tions may  keep  one  half  of  its  lawful  money  reserve  in  cash 
deposits  in  the  city  of  New  York.  And  each  association  not 
organized  within  the  cities  named  in  the  preceding  section  shall 
select,  subject  to  the  approval  of  the  Comptroller  of  the  Cur- 
rency, an  association  in  either  of  the  cities  named  in  the  preced- 
ing section  at  which  it  will  redeem  its  circulating  notes  at  par, 
and  the  Comptroller  shall  give  public  notice  of  the  names  of  the 
associations  so  selected  at  which  redemptions  are  to  be  made  by 
the  respective  associations,  and  of  any  change  that  may  be  made 
of  the  association  at  which  the  notes  of  any  association  are  re- 
deemed. If  any  association  shall  fail  either  to  make  the  selec- 
tion or  to  redeem  its  notes  as  aforesaid,  the  Comptroller  of  the 
Currency  may,  upon  receiving  satisfactory  evidence  thereof, 
appoint  a  receiver,  in  the  manner  provided  for  in  this  act,  to 
wind  up  its  affairs :  Provided,  That  nothing  in  this  section  shall 
relieve  any  association  from  its  liability  to  redeem  its  circulating 
notes  at  its  own  counter,  at  par,  in  lawful  money,  on  demand : 
And  provided,  further,  That  every  association  formed  or  existing 
under  the  provisions  of  this  act  shall  take  and  receive  at  par,  for 
any  debt  or  liability  to  said  association,  any  and  all  notes  or  bills 


186  BANK  ACT:  SURPLUS:  LIABILITIES.  [1864. 

issued  by  any  association  existing  under  and  by  virtue  of  this 
act. 

SEC.  33.  And  be  it  further  enacted,  That  the  directors  of  any 
association  may,  semi-annually,  each  year,  declare  a  dividend  of 
so  much  of  the  net  profits  of  the  association  as  they  shall  judge 
expedient ;  but  each  association  shall,  before  the  declaration  of  a 
dividend,  carry  one  tenth  part  of  its  net  profits  of  the  preced- 
ing half  year  to  its  surplus  fund  until  the  same  shall  amount  to 
twenty  per  centum  of  its  capital  stock. 

[Section  34  provides  for  quarterly  reports  of  the  condition  of  every 
association,  to  be  made  by  its  officers  to  the  Comptroller  and  published 
by  him,  and  also  for  monthly  reports  to  be  made  to  him.  This  section 
was  superseded  by  the  Act  of  March  3,  1869,  which  directs  that  every 
association  shall  make  at  least  five  reports  annually  of  its  resources  and 
liabilities  on  any  past  day  specified  by  the  Comptroller,  and  shall  publish 
the  same  in  a  newspaper  in  the  place  where  the  association  is  estab- 
lished ;  and  that  every  association  shall  also  report  to  the  Comptroller 
the  amount  of  its  net  earnings  and  dividends,  and  make  such  further 
special  reports  as  he  may  call  for.  15  Statutes  at  Large,  326.] 

SEC.  35.  And  be  it  further  enacted.  That  no  association  shall 
make  any  loan  or  discount  on  the  security  of  the  shares  of  its 
own  capital  stock,  nor  be  the  purchaser  or  holder  of  any  such 
shares,  unless  such  security  or  purchase  shall  be  necessary  to 
prevent  loss  upon  a  debt  previously  contracted  in  good  faith ; 
and  stock  so  purchased  or  acquired  shall,  within  six  months  from 
the  time  of  its  purchase,  be  sold  or  disposed  of  at  public  or 
private  sale,  in  default  of  which  a  repeiver  may  be  appointed  to 
close  up  the  business  of  the  association,  according  to  the  pro- 
visions of  this  act. 

SEC.  36.  And  be  it  further  enacted,  That  no  association  shall 
at  any  time  be  indebted,  or  in  any  way  liable,  to  an  amount  ex- 
ceeding the  amount  of  its  capital  stock  at  such  time  actually 
paid  in  and  remaining  undiminished  by  losses  or  otherwise,  except 
on  the  following  accounts,  that  is  to  say  :  — 

First.  On  account  of  its  notes  of  circulation. 

Second.  On  account  of  moneys  deposited  with,  or  collected 
by,  such  association. 
'  Third.  On   account   of  bills  of  exchange   or   drafts   drawn 


1864.]      BANK  ACT:  EXPENSES  OF  BUREAU:  TAXES.  187 

against  money  actually  on  deposit  to  the  credit  of  such  associa- 
tion, or  due  thereto. 

Fourth.  On  account  of  liabilities  to  its  stockholders  for  divi- 
dends and  reserved  profits. 

SEC.  37.  And  be  it  further  enacted,  That  no  association  shall, 
either  directly  or  indirectly,  pledge  or  hypothecate  any  of  its 
notes  of  circulation,  for  the  purpose  of  procuring  money  to  be 
paid  in  on  its  capital  stock,  or  to  be  used  in  its  banking  opera- 
tions, or  otherwise ;  nor  shall  any  association  use  its  circulating 
notes,  or  any  part  thereof,  in  any  manner  or  form,  to  create  or 
increase  its  capital  stock. 

[Section  38  forbids  any  association,  while  continuing  its  business,  to 
withdraw  or  permit  to  be  withdrawn  any  of  its  capital,  except  as  pro- 
vided in  section  13,  or  to  make  any  dividend  to  an  amount  exceeding  its 
net  profits  then  on  hand,  deducting  therefrom  its  losses  and  bad  debts ; 
and  for  this  purpose  all  debts  on  which  interest  is  past  due  and  unpaid 
for  six  months,  unless  they  are  well  secured  and  in  process  of  collection, 
are  to  be  held  bad. 

Section  39  forbids  any  association  to  pay  out  or  put  in  circulation  the 
notes  of  any  bank  or  association  which  are  not  at  the  time  receivable  at 
par  by  the  association  paying  them  out ;  or  to  pay  out  or  put  in  circula- 
tion the  notes  of  any  bank  or  association  which  is  not  redeeming  its 
notes  in  lawful  money.] 

SEC.  41.  And  be  it  further  enacted,  That  the  plates  and  spe- 
cial dies  to  be  procured  by  the  Comptroller  of  the  Currency  for 
the  printing  of  such  circulating  notes  shall  remain  under  his 
control  and  direction,  and  the  expenses  necessarily  incurred  in 
executing  the  provisions  of  this  act  respecting  the  procuring  of 
such  notes,  and  all  other  expenses  of  the  bureau,  shall  be  paid 
out  of  the  proceeds  of  the  taxes  or  duties  now  or  hereafter  to 
be  assessed  on  the  circulation,  and  collected  from  associations 
organized  under  this  act. 

[It  is  then  provided  that  every  association  shall  pay  to  the  United 
States  a  tax  of  one  per  cent,  per  annum  on  the  average  amount  of  its 
notes  in  circulation,  one  half  of  one  per  cent,  on  the  average  amount  of 
its  deposits,  and  one  half  of  one  per  cent,  on  its  capital  stock  beyond  the 
amount  invested  in  United  States  bonds.  But  the  shares  of  any  asso- 
ciation may  be  taxed  as  personal  property  by  the  State  in  which  it  is 
located,  and  not  elsewhere,  at  a  rate  not  greater  than  is  imposed  upoa 
other  moneyed  capital  in  the  hands  of  the  citizens  of  the  State,  or  upon 


188  BANK  ACT:  DEPOSITS  OF  PUBLIC  MONEY.        [1864. 

the  shares  of  banks  organized  under  the  authority  of  the  State  ;  and  the 
real  estate  of  associations  shall  be  subject  to  State,  county,  and  munici- 
pal taxes  to  the  same  extent  as  other  real  estate. 

Section  42  provides  for  the  closing  of  any  association  upon  the  vote 
of  shareholders  owning  two  thirds  of  its  capital,  and  for  calling  in  its 
notes.  Under  this  section,  as  modified  by  the  Act  of  July  14,  1870,  any 
association  thus  voting  to  close  its  affairs  must  within  six  months  pay  to 
the  Treasurer  of  the  United  States  the  amount  of  its  outstanding  notes 
in  lawful  money ;  whereupon  the  bonds  pledged  as  security  for  its  circu- 
lation shall  be  returned  to  it,  and  its  notes  shall  from  that  time  be  re- 
deemed at  the  Treasury  and  destroyed,  and  the  association  discharged 
from  all  liability  therefor.  16  Statutes  at  Large,  274. 

Section  44  provides  that  any  bank  established  under  the  laws  of  any 
State  may  by  vote  of  the  owners  of  two  thirds  of  its  capital  stock  be 
reorganized  as  an  association  under  this  act,  without  change  of  stock- 
holders or  directors  or  in  the  amount  of  its  shares,  provided  that  its 
capital  shall  not  be  less  than  is  prescribed  for  associations  under  this 
act.] 

SEC.  45.  And  be  it  further  enacted,  That  all  associations 
under  this  act,  when  designated  for  that  purpose  by  the  Secre- 
tary of  the  Treasury,  shall  be  depositaries  of  public  money,  ex- 
cept receipts  from  customs,  under  such  regulations  as  may  be 
prescribed  by  the  Secretary ;  and  they  may  also  be  employed  as 
financial  agents  of  the  government ;  and  they  shall  perform  all 
such  reasonable  duties,  as  depositaries  of  public  moneys  and 
financial  agents  of  the  government,  as  may  be  required  of  them. 
And  the  Secretary  of  the  Treasury  shall  require  of  the  associa- 
tions thus  designated  satisfactory  security,  by  the  deposit  of 
United  States  bonds  and  otherwise,  for  the  safe-keeping  and 
prompt  payment  of  the  public  money  deposited  with  them,  and 
for  the  faithful  performance  of  their  duties  as  financial  agents  of 
the  government:  Provided,  that  every  association  which  shall 
be  selected  and  designated  as  receiver  or  depositary  of  the  pub- 
lic money  shall  take  and  receive  at  par  all  of  the  national  cur- 
rency bills,  by  whatever  association  issued,  which  nave  been 
paid  in  to  the  government  for  internal  revenue,  or  for  loans  or 
stocks. 

[Section  46  et  seg.  provides  that  if  any  association  shall  fail  to  redeem 
in  lawful  money  any  of  its  circulating  notes,  when  payment  thereof  is 
demanded  at  the  proper  place  during  the  usual  hours  of  business,  the 
holder  of  such  notes  may  cause  them  to  be  protested  and  notify  the 


18G4.]     BANK  ACT  :  FAILURE  TO  REDEEM  NOTES.        189 

Comptroller  of  the  failure.  The  Comptroller,  if  satisfied  that  the  asso- 
ciation lias  refused  to  pay  its  notes  and  is  in  default,  shall  declare  the 
bonds  pledged  by  the  association  to  be  forfeited  to  the  United  States  and 
shall  notify  the  holders  of  its  notes  to  present  them  for  payment  at  the 
Treasury.  And  for  the  notes  thus  paid  at  the  Treasury,  the  Comptroller 
may  either  cancel  an  amount  of  the  bonds  equal  at  the  market  rate,  not 
exceeding  par,  to  the  notes  so  paid,  or  may  cause  the  necessary  amount 
of  the  bonds  to  be  sold  by  public  auction  in  the  city  of  New  York,  or 
may  sell  the  necessary  amount  by  private  sale,  provided  that  they  shall 
not  be  sold  by  private  sale  for  less  than  the  market  rate  nor  less  than 
par.  And  if  the  proceeds  of  the  bonds  pledged  by  the  association  are 
insufficient  to  reimburse  the  amount  expended  in  payment  of  its  notes, 
the  United  States  shall  have  a  first  and  paramount  lien  for  the  deficiency 
upon  all  the  assets  of  the  association,  to  be  made  good  in  preference  to 
all  other  claims. 

Section  50  authorizes  the  Comptroller,  when  satisfied  that  any  asso- 
ciation has  refused  to  pay  its  circulating  notes  and  is  in  default,  to  ap- 
point a  receiver,  who  shall  take  charge  of  all  the  books  and  assets  of  the 
association  and  collect  all  debts  and  property  belonging  to  it,  and,  if  nec- 
essary, enforce  the  individual  liability  of  the  shareholders  under  section 
12  of  this  act.  And  the  Comptroller,  after  reimbursing  to  the  United 
States,  from  the  fund  thus  collected,  any  deficiency  due  from  the  asso- 
ciation for  the  redemption  of  its  notes,  shall  make  a  ratable  payment  of 
the  debts  of  the  association,  and  the  remainder  of  the  fund,  if  any,  after 
payment  of  these  debts,  he  shall  pay  over  to  the  shareholders,  in  propor- 
tion to  the  stock  held  by  each.] 

SEC.  54.  And  be  it  further  enacted,  That  the  Comptroller  of 
the  Currency,  with  the  approbation  of  the  Secretary  of  the 
Treasury,  as  often  as  shall  be  deemed  necessary  or  proper,  shall 
appoint  a  suitable  person  or  persons  to  make  an  examination  of 
the  affairs  of  every  banking  association,  which  person  shall  not 
be  a  director  or  other  officer  in  any  association  whose  affairs  he 
shall  be  appointed  to  examine,  and  who  shall  have  power  to 
make  a  thorough  examination  into  all  the  affairs  of  the  associa- 
tion, and,  in  doing  so,  to  examine  any  of  the  officers  and  agents 
thereof  on  oath ;  and  shall  make  a  full  and  detailed  report  of 
the  condition  of  the  association  to  the  Comptroller. 

[Succeeding  sections  provide  penalties  for  embezzlement  by  the  officers 
of  any  association,  for  the  mutilation  or  disfigurement  of  notes  with  the 
intent  to  make  them  unfit  for  reissue,  and  for  counterfeiting,  passing 
counterfeit  notes,  or  having  in  possession  such  notes  or  the  engraved 
plates  or  paper  for  making  such  notes,  with  intent  to  use. 


190  BANK  ACT:  COMPARED  WITH  ACT  OF  1863.      [1864. 

Section  61  requires  the  Comptroller  to  report  annually  to  Congress 
the  condition  of  every  association  as  shown  by  its  reports,  with  abstract 
statements  of  the  total  amount  of  liabilities,  resources,  and  reserves,  the 
amount  of  circulation  redeemed  and  outstanding  for  associations  which 
have  closed  their  business  during  the  year,  and  finally  such  changes  in 
the  laws  relative  to  banking  as  may  improve  the  system  and  increase  its 
security. 

Section  62  repeals  the  Act  of  February  25,  1863,  but  provides  that  the 
repeal  shall  not  affect  organizations  or  proceedings  begun  or  had  under 
said  act,  and  that  circulation  issued  by  any  association  organized  under 
it  shall  be  deemed  a  part  of  the  circulation  authorized  by  the  present 
act.  And  it  is  further  provided  that  any  association  established  or  or- 
ganizing under  the  former  act  may  change  its  name,  with  the  approval 
of  the  Comptroller.] 

SEC.  63.  And  be  it  further  enacted,  That  persons  holding 
stock  as  executors,  administrators,  guardians,  and  trustees,  shall 
not  be  personally  subject  to  any  liabilities  as  stockholders  ;  but 
the  estates  and  funds  in  their  hands  shall  be  liable  in  like  man- 
ner and  to  the  same  extent  as  the  testator,  intestate,  ward,  or 
person  interested  in  said  trust-funds  would  be  if  they  were  re- 
spectively living  and  competent  to  act  and  hold  the  stock  in 
their  names. 

SEC.  64.  And  be  it  further  enacted,  That  Congress  may  at 
any  time  amend,  alter,  or  repeal  this  act. 

[By  the  Act  of  Marcli  1,  1872,  Leavenworth  is  struck  out  from  the 
list  of  redemption  cities  in  section  31  above.  17  Statutes  at  Large,  32. 

The  use  of  the  word  "  national,"  as  a  part  of  the  name  of  any  bank 
not  organized  under  the  national  currency  act  above,  is  forbidden  by  the 
Act  of  March  3, 1873.  17  Statutes  at  Large,  603.] 

[Approved,  June  3,  1864.    13  Statutes  at  Large,  99.) 

NOTE.  —  The  above  act  is  in  substance  a  revision  of  that  of  February 
25, 1863,  with  only  such  changes  as  experience  had  shown  to  be  necessary 
for  the  trial  of  the  system.  Some  of  the  principal  points  of  difference 
between  the  two  acts  are  the  following :  — 

The  Act  of  1863  made  no  provision  for  the  redemption  of  the  cir- 
culation by  the  banks  of  the  principal  cities,  such  as  is  contained  in  sec- 
tions 31  and  32  of  the  Act  of  1864  ;  but  simply  required  that  every  bank 
should  redeem  its  circulation  at  its  own  counter,  and  that  it  should  have 
for  that  and  other  purposes  a  reserve  equal  to  twenty-five  per  cent,  of  its 
circulation  «.nd  deposits,  of  which  reserve  three-fifths  might  be  deposited 
with  associations  in  nine  principal  cities  named  in  the  act. 


18C4.]  "THE  GOLD  BILL."  191 

The  prohibition  of  the  issue  of  circulating  notes  of  a  less  denomina- 
tion than  five  dollars,  took  effect  at  once  in  the  Act  of  1863. 

Under  the  Act  of  1863,  coupon  bonds  might  be  deposited  to  secure  the 
circulation,  but  by  the  Act  of  1864  only  registered  bonds. 

The  Act  of  1863  required  a  smaller  minimum  of  capital  for  a  new 
bank  than  the  Act  of  1864,  required  a  smaller  proportion  to  be  paid  in 
before  beginning  business,  and  allowed  a  longer  time  for  the  payment  of 
the  remainder. 

The  Act  of  1864  makes  more  complete  provision  than  that  of  1863  for 
the  conversion  of  State  banks  into  national  associations,  permitting  the 
retention  of  the  former  name  of  a  bank  after  conversion,  and  in  section  12 
exempting  the  stockholders  of  such  banks  from  personal  liability  under 
certain  conditions,  which  were  intended  to  meet  the  case  of  the  Bank  of 
Commerce  in  the  city  of  New  York. 

The  Act  of  1863  failed  to  provide  as  to  the  taxation  of  shares  by  State 
authority. 

The  Act  of  1863  required  the  apportionment  of  the  total  circulation 
among  the  States  and  Territories,  one  half  according  to  representative 
population  and  one  half  having  due  regard  to  the  existing  banking  capital 
and  resources. 

For  changes  in  the  provision  made  in  section  22,  as  to  the  total  amount 
of  bank  notes  and  for  the  apportionment  thereof,  see  below,  pages  199,  202, 
204,  212,  213,  214. 

For  changes  in  the  limit  of  circulation  allowed  to  any  bank  in  section  21, 
and  in  the  amount  of  bonds  to  be  held,  see  below,  pages  199,  203,  204,  211, 

216,  221,  222. 

i 

1863-64,  Chap.  CXXVII.  —  An  Act  to  prohibit  certain  Sales 
of  Gold  and  Foreign  Exchange. 

J3e  it  enacted,  .  .  .  That  it  shall  be  unlawful  to  make  any 
contract  for  the  purchase  or  sale  and  delivery  of  any  gold  coin 
or  bullion  to  be  delivered  on  am-  da}-  subsequent  to  the  day  of 
making  such  contract,  or  for  the  payment  of  any  sum,  either 
fixed  or  contingent,  in  default  of  the  delivery  of  an}-  gold  coin 
or  bullion,  or  to  make  such  contract  upon  an}7  other  terms  than 
the  actual  delivery  of  such  gold  coin  or  bullion,  and  the  payment 
in  full  of  the  agreed  price  thereof,  on  the  day  on  which  such 
contract  is  made,  in  United  States  notes  or  national  currency, 
and  not  otherwise  ;  or  to  make  any  contract  for  the  purchase  or 
sale  and  delivery  of  any  foreign  exchange  to  be  delivered  at  any 
time  beyond  ten  days  subsequent  to  the  making  of  such  contract ; 
or  for  the  payment  of  any  sum,  either  fixed  or  contingent,  in  de- 


192  "THE  GOLD  BILL."  [18G4. 

fault  of  the  delivery  of  any  foreign  exchange,  or  upon  any  other 
terms  than  the  actual  delivery  of  such  foreign  exchange  within 
ten  days  from  the  making  of  such  contract,  and  the  immediate 
payment  in  full  of  the  agreed  price  thereof  on  the  day  of  de 
livery  in  United  States  notes  or  national  currency;  or  to  make 
any  contract  whatever  for  the  sale  and  delivery  of  any  gold  coin 
or  bullion  of  which  the  person  making  such  contract  shall  not, 
at  the  time  of  making  the  same,  be  in  actual  possession.  And 
it  shall  be  unlawful  to  make  any  loan  of  money  or  currency  not 
being  in  coin  to  be  repaid  in  coin  or  bullion,  or  to  make  any 
loan  of  coin  or  bullion  to  be  repaid  in  money  or  currency  other 
than  coin. 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  further 
unlawful  for  any  banker,  broker,  or  other  person,  to  make  any 
purchase  or  sale  of  any  gold  coin  or  bullion,  or  of  any  foreign 
exchange,  or  any  contract  for  any  such  purchase  or  sale,  at  any 
other  place  than  the  ordinary  place  of  business  of  either  the 
seller  or  purchaser,  owned  or  hired,  and  occupied  by  him  individ- 
ually, or  by  a  partnership  of  which  he  is  a  member. 

SEC.  3.  And  be  it  further  enacted,  That  all  contracts  made  in 
violation  of  this  act  shall  be  absolutely  void. 

SEC.  4.  And  be  it  further  enacted,  That  any  person  who  shall 
violate  any  provisions  of  this  act  shall  be  held  guilty  of  a  mis- 
demeanor, and,  on  conviction  thereof,  be  fined  in  any  sum  not 
less  than  one  thousand  dollars,  nor  more  than  ten  thousand  dol- 
lars, or  be  imprisoned  for  a  period  not  less  than  three  months,  nor 
longer  than  one  year,  or  both,  at  the  discretion  of  the  court,  and 
shall  likewise  be  subject  to  a  penalty  of  one  thousand  dollars  for 
each  offence. 

SEC.  5.  And  be  it  further  enacted,  That  the  penalties  imposed 
by  the  fourth  section  of  this  act  may  be  recovered  in  an  action 
at  law  in  any  court  of  record  of  the  United  States,  or  any  court 
of  competent  jurisdiction,  which  action  may  be  brought  in  the 
name  of  the  United  States  by  any  person  who  will  sue  for  said 
penalty,  one  half  for  the  use  of  the  United  States,  and  the  othor 
half  for  the  use  of  the  person  bringing  such  action.  And  the 
recovery  and  satisfaction  of  a  judgment  in  any  such  action  shall 
be  a  bar  to  the  imposition  of  any  fine  for  the  same  offence  in 


1864.]  ISSUE   OF   BONDS   AND   TREASURY  NOTES.  193 

any  prosecution  instituted  subsequent  to  the  recovery  of  such 
judgment,  but  shall  not  be  a  bar  to  the  infliction  of  punish- 
ment by  imprisonment,  as  provided  by  said  fourth  section. 

SEC.  6.  And  be  it  further  enacted,  That  all  acts  and  parts  of 
acts  inconsistent  with  the  provisions  of  tins  act  are  hereby 

repealed.  [Approved,  June  17,  1864.     13  Statutes  at  Large,  132  ] 

NOTE.  —  The  above  Act  was  repealed  by  the  Act  approved  July  2, 
1864.  See  13  Statutes  at  Large,  344. 

1863-64,  Chap.  CLXXII.  —  An  Act  to  provide  Ways  and 
Means  for  the  Support  of  the  Government,  and  for  other 
Purposes. 

Be  it  enacted, . . .  That  the  Secretary  of  the  Treasury  be,  and 
he  is  hereby,  authorized  to  borrow,  from  time  to  time,  on  the  credit 
of  the  United  States,  four  hundred  millions  of  dollars,  and  to  issue 
therefor  coupon  or  registered  bonds  of  the  Uuited  States,  redeem- 
able at  the  pleasure  of  the  government,  after  any  period  not  less 
than  five,  nor  more  than  thirty,  years,  or,  if  deemed  expedient, 
made  payable  at  any  period  not  more  than  forty  years  from  date. 
And  said  bonds  shall  be  of  such  denominations  as  the  Secretary 
of  the  Treasury  shall  direct,  not  less  than  fifty  dollars,  and  bear 
an  annual  interest  not  exceeding  six  per  centum,  payable  semi- 
annually  in  coin.  And  the  Secretary  of  the  Treasury  may  dis- 
pose of  such  bonds,  or  any  part  thereof,  and  of  any  bonds 
commonly  known  as  five-twenties  remaining  unsold,  in  the 
United  States,  or,  if  he  shall  find  it  expedient,  in  Europe,  at 
any  time,  on  such  terms  as  he  may  deem  most  advisable,  for  law- 
ful money  of  the  United  States,  or,  at  his  discretion,  for  treasury 
notes,  certificates  of  indebtedness,  or  certificates  of  deposit  issued 
under  any  act  of  Congress.  And  all  bonds,  treasury  notes,  and 
other  obligations  of  the  United  States  shall  be  exempt  from 
taxation  by  or  under  State  or  municipal  authority. 

SEC.  2.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  issue  on  the  credit  of  the  United  States,  and  ia 
lieu  of  an  equal  amount  of  bonds  authorized  by  the  preceding 
section,  and  as  a  part  of  said  loan,  not  exceeding  two  hundred 
millions  of  dollars,  in  treasury  notes  of  any  denomination  not 
less  than  ten  dollars,  payable  at  any  time  not  exceeding  three 

13 


194  ISSUE   OF   LEGAL   TENDER  NOTES   LIMITED.  [1864. 

years  from  date,  or,  if  thought  more  expedient,  redeemable  at 
any  time  after  three  years  from  date,  and  bearing  interest  not 
exceeding  the  rate  of  seven  and  three-tenths  per  centum,  payable 
in  lawful  money  at  maturity,  or,  at  the  discretion  of  the  Secre- 
tary, semi-annually.  And  the  said  treasury  notes  may  be  dis- 
posed of  by  the  Secretary  of  the  Treasury,  on  the  best  terms 
that  can  be  obtained,  for  lawful  money ;  and  such  of  them  as 
shall  be  made  payable,  principal  and  interest,  at  maturity,  shall 
be  a  legal  tender  to  the  same  extent  as  United  States  notes  for 
their  face  value,  excluding  interest,  and  may  be  paid  to  any 
creditor  of  the  United  States  at  their  face  value,  excluding 
interest,  or  to  any  creditor  willing  to  receive  them  at  par, 
including  interest ;  and  any  treasury  notes  issued  under  the 
authority  of  this  act  may  be  made  convertible,  at  the  discre- 
tion of  the  Secretary  of  the  Treasury,  into  any  bonds  issued 
under  the  authority  of  this  act.  And  the  Secretary  of  the 
Treasury  may  redeem,  and  cause  to  be  cancelled  and  destroyed, 
any  treasury  notes  or  United  States  notes  heretofore  issued 
under  authority  of  previous  acts  of  Congress,  and  substitute, 
in  lieu  thereof,  an  equal  amount  of  treasury  notes  such  as  are 
authorized  by  this  act,  or  of  other  United  States  notes :  Pro- 
vided, That  the  total  amount  of  bonds  and  treasury  notes  author- 
ized by  the  first  and  second  sections  of  this  act  shall  not  exceed 
four  hundred  millions  of  dollars,  in  addition  to  the  amounts 
heretofore  issued ;  nor  shall  the  total  amount  of  United  States 
notes,  issued  or  to  be  issued,  ever  exceed  four  hundred  millions 
of  dollars,  and  such  additional  sum,  not  exceeding  fifty  millions 
of  dollars,  as  may  be  temporarily  required  for  the  redemption  of 
temporary  loan ;  nor  shall  any  treasury  note  bearing  interest, 
issued  under  this  act,  be  a  legal  tender  in  payment  or  redemption 
of  any  notes  issued  by  any  bank,  banking  association,  or  banker, 
calculated  or  intended  to  circulate  as  money. 

[Section  3  authorizes  the  Secretary  of  the  Treasury  to  exchange  bonds 
heretofore  issued  on  which  the  interest  is  payable  annually,  for  others 
bearing  interest  payable  semi-annually.  The  treasury  notes  heretofore 
issued,  bearing  seven  and  three-tenths  per  cent,  interest,  may  be  exchanged 
for  the  six  per  cent,  bonds  heretofore  authorized,  at  any  time  within  three 
months  after  notice  of  redemption  given  by  the  Secretary,  after  which 
\nterest  on  such  notes  shall  cease ;  and  the  interest  on  such  notes  after 


1864.]       FURTHER  INCREASE   OF   TEMPORARY   DEPOSITS.  195 

maturity  Bhall  be  paid  in  lawful  money.  So  much  of  the  Act  of  March 
3,  1864,  as  limits  the  loan  therein  authorized  to  the  current  fiscal  year,  is 
repealed.  The  authority  to  issue  bonds  or  notes,  conferred  by  section  1 
of  the  Act  of  March  3, 1863,  is  to  cease  on  the  passage  of  this  act,  except 
so  far  as  it  may  affect  seventy -five  millions  of  bonds  already  advertised.] 

SEC.  4.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  may  authorize  the  receipt,  as  a  temporary  loan,  of 
United  States  notes,  or  the  notes  of  national  banking  associations, 
on  deposit  for  not  less  than  thirty  days,  in  sums  of  not  less  than 
fifty  dollars,  by  any  of  the  Assistant  Treasurers  of  the  United 
States,  or  depositaries  designated  for  that  purpose,  other  than 
national  banking  associations,  .  .  . 

[Certificates  of  deposit  shall  be  given,  bearing  interest  not  exceeding 
six  per  cent,  per  annum,  and  payable  upon  ten  days'  notice ;  and  the  Sec- 
retary may  increase  the  rate  of  interest,  if  below  six  per  cent.,  or  may 
lower  the  same  on  ten  days'  notice,  at  his  discretion.] 

but  the  aggregate  of  such  deposits  shall  not  exceed  one  hundred 
and  fifty  millions  of  dollars ;  and  the  Secretary  of  the  Treasury 
may  issue,  and  shall  hold  in  reserve  for  paj'ment  of  such  de- 
posits, United  States  notes  not  exceeding  fifty  millions  of  dol- 
lars, including  the  amount  already  applied  in  such  payment ; 
and  the  United  States  notes,  so  held  in  reserve,  shall  be  used 
only  when  needed,  in  his  judgment,  for  the  prompt  payment  of 
such  deposits  on  demand,  and  shall  be  withdrawn  and  placed 
again  in  reserve  as  the  amount  of  deposits  shall  again  increase. 

[Section  5  authorizes  the  Secretary  of  the  Treasury  to  issue  "notes 
of  the  fractions  of  a  dollar  as  now  used  for  currency,"  and  to  provide 
for  their  redemption  when  mutilated  or  defaced,  and  for  their  receipt  in 
payment  of  debts  to  the  United  States,  except  for  customs,  in  sums  not 
over  five  dollars ;  but  the  whole  amount  of  all  notes  or  stamps  less  than 
one  dollar  issued  as  currency  shall  not  exceed  fifty  millions  of  dollars. 

Section  7  authorizes  the  issue  of  registered  bonds  in  lieu  of  coupon 
bonds,  already  or  hereafter  to  be  issued.] 

[Approved,  June  30,  1864.    13  Statutes  at  Large,  218.] 


196  LAST   LEGAL   TENDER   ACT.  [1865. 

1864-65,  Chap.  XXII. — An  Act  to  amend  an  Act  entitled 
"An  Act  to  provide  Ways  and  Means  for  the  Support  of  the 
Government,  and  for  other  Purposes"  approved  June  thir- 
tieth, eighteen  hundred  and  sixty-four. 

Be  it  enacted,  .  .  .  That  in  lieu  of  any  bonds  authorized  to  be 
issued  by  the  first  section  of  the  act  entitled  "  An  act  to  provide 
ways  and  means  for  the  support  of  the  government,"  approved 
June  thirtieth,  eighteen  hundred  and  sixty-four,  that  may  remain 
unsold  at  the  date  of  this  act,  the  Secretary  of  the  Treasury 
may  issue,  under  the  authority  of  said  act,  treasury  notes  of  the 
description  and  character  authorized  by  the  second  section  of 
said  act :  Provided,  That  the  whole  amount  of  bonds  authorized 
as  aforesaid,  and  treasury  notes  issued  and  to  be  issued  in  lieu 
thereof,  shall  not  exceed  the  sum  of  four  hundred  millions  of 
dollars ;  and  such  treasury  notes  may  be  disposed  of  for  lawful 
money,  or  for  any  other  treasury  notes  or  certificates  of  indebted- 
ness or  certificates  of  deposit  issued  under  any  previous  act  of 
Congress;  and  such  notes  shall  be  exempt  from  taxation  by  or 
under  State  or  municipal  authority. 

SEC.  2.  And  be  it  further  enacted,  That  any  bonds  known  as 
five-twenties,  issued  under  the  act  of  twenty-fifth  February, 
eighteen  hundred  and  sixty -two,  remaining  unsold  to  an  amount 
not  exceeding  four  millions  of  dollars,  may  be  disposed  of  by  the 
Secretary  of  the  Treasury  in  the  United  States,  or,  if  he  shall 
find  it  expedient,  in  Europe,  at  any  time,  on  such  terms  as  he 
may  deem  most  advisable :  Provided,  That  this  act  shall  not  be 
so  construed  as  to  give  any  authority  for  the  issue  of  any  legal 
tender  notes,  in  any  form,  beyond  the  balance  unissued  of  the 
amount  authorized  by  the  second  section  of  the  act  to  which  this 
is  an  amendment. 

[Approved,  January  28, 1865.    13  Statutes  at  Large,  425.] 

1864-65,  Chap.  LXXVII.  —  An  Act  to  provide  Ways  and 

Means  for  the  Support  of  the  Government. 
Be  it  enacted,  . .  .  That  the  Secretary  of  the  Treasury  be,  and 
ne  is  hereby,  authorized  to  borrow,  from  time  to  time,  on  the  credit 
of  the  United  States,  in  addition  to  the  amounts  heretofore 


1865.]  FUNDING   OF   FLOATING   DEBT.  197 

authorized,  any  sums  not  exceeding  in  the  aggregate  six  hundred 
millions  of  dollars,  and  to  issue  therefor  bonds  or  treasury  notes 
of  the  United  States,  in  such  form  as  he  may  prescribe ;  and  so 
much  thereof  as  may  be  issued  in  bonds  shall  be  of  denomina- 
tions not  less  than  fifty  dollars,  and  may  be  made  payable  at  any 
period  not  more  than  forty  years  from  date  of  issue,  or  may  be 
made  redeemable  at  the  pleasure  of  the  government,  at  or  after 
any  period  not  less  than  five  years  nor  more  than  forty  years 
from  date,  or  may  be  made  redeemable  and  payable  as  aforesaid, 
as  may  be  expressed  upon  their  face ;  and  so  much  thereof  as  may 
be  issued  in  treasury  notes  may  be  made  convertible  into  any 
bonds  authorized  by  this  act,  and  may  be  of  such  denominations 
—  not  less  than  fifty  dollars  —  and  bear  such  dates,  and  be  made 
redeemable  or  payable  at  such  periods  as  in  the  opinion  of  the 
Secretary  of  the  Treasury  may  be  deemed  expedient.  And  the 
interest  on  such  bonds  shall  be  payable  semi-annually ;  and  on 
treasury  notes  authorized  by  this  act  the  interest  may  be  made 
payable  semi-annually,  or  annually,  or  at  maturity  thereof;  and 
the  principal,  or  interest,  or  both,  may  be  made  payable  in  coin 
or  in  other  lawful  money:  Provided,  That  the  rate  of  interest  on 
any  such  bonds  or  treasury  notes,  when  payable  in  coin,  shall  not 
exceed  six  per  centum  per  annum ;  and  when  not  payable  in  coin 
shall  not  exceed  seven  and  three-tenths  per  centum  per  annum  ; 
and  the  rate  and  character  of  interest  shall  be  expressed  on  all 
such  bonds  or  treasury  notes :  And  provided,  further,  That  the 
act  entitled  "  An  act  to  provide  ways  and  means  for  the  support 
of  the  government,  and  for  other  purposes,"  approved  June  thir- 
tieth, eighteen  hundred  and  sixty-four,  shall  be  so  construed  as  to 
authorize  the  issue  of  bonds  of  any  description  authorized  by  this 
act  And  any  treasury  notes  or  other  obligations  bearing  inter- 
est, issued  under  any  act  of  Congress,  may,  at  the  discretion  of 
the  Secretary  of  the  Treasury,  and  with  the  consent  of  the 
holder,  be  converted  into  any  description  of  bonds  authorized  by 
this  act ;  and  no  bonds  so  authorized  shall  be  considered  a  part 
of  the  amount  of  six  hundred  millions  hereinbefore  authorized. 

[Section  2  authorizes  the  Secretary  of  the  Treasury  to  dispose  of  any 
of  the  obligations  issued  under  this  act,  where  and  under  such  condition, 
and  at  such  rates  as  he  thinks  best,  for  coin  or  other  lawful  money, 


198  TAX   ON   NOTES   OF    STATE    BANKS.  [1865. 

r 

treasury  notes,  or  certificates  of  indebtedness  or  of  deposit,  and  the  like ; 
and  to  issue  bonds  or  treasury  notes  authorized  by  this  act  in  payment  of 
requisitions  for  materials  or  supplies,  on  receiving  notice  that  the  owner 
of  the  claim  for  which  any  requisition  is  made  desires  to  subscribe  for  a 
portion  of  the  loan ;  "and  all  bonds  or  other  obligations  issued  under  this 
act  shall  be  exempt  from  taxation  by  or  under  state  or  municipal 
authority." 

Section  3  contains  a  proviso,  "  That  nothing  herein  contained  shall  be 
construed  as  authorizing  the  issue  of  legal-tender  notes  in  any  form."] 

[Approved,  March  3,  1865.     13  Statutes  at  Large,  468.] 

1864-65,  Chap.  LXXVIII.  —  An  Act  to  amend  an  Act  enti- 
tled '•'•An  Act  to  provide  Internal  Revenue  to  support 
the  Government,  to  pay  Interest  on  the  Public  Debt,  and 
for  other  Purposes"  approved  June  thirtieth,  eighteen 
hundred  and  sixty-four. 

SEC.  6.  And  be  it  further  enacted.  That  every  national  bank 
ing  association,  State  bank,  or  State  banking  association,  shall 
pay  a  tax  of  ten  per  centum  on  the  amount  of  notes  of  any 
State  bank  or  State  banking  association,  paid  out  by  them  after 
the  first  day  of  July,  eighteen  hundred  and  sixty-six. 

[By  subsequent  legislation  this  provision  is  made  to  include  also  the 
notes  of  any  person,  firm,  association,  corporation,  town,  city,  or  munici- 
pal corporation,  and  the  tax  is  imposed  both  on  the  issuer  of  the  notes  and 
on  any  person,  bank,  or  corporation  paying  them  out.  See  13  Statutes 
at  Large,  146;  15  ibid.,  6;  18  ibid.,  311.] 

SEC.  7.  And  be  it  further  enacted,  That  any  existing  bank 
organized  under  the  laws  of  any  State,  having  a  paid-up  capital 
of  not  less  than  seventy-five  thousand  dollars,  which  shall  apply 
before  the  first  day  of  July  next  for  authority  to  become  a  na- 
tional bank  under  the  act  entitled  "  An  act  to  provide  a  national 
currency  secured  by  a  pledge  of  United  States  bonds,  and  to 
provide  for  the  circulation  and  redemption  thereof,"  approved 
June  third,  eighteen  hundred  and  sixty-four,  and  shall  comply 
with  all  the  requirements  of  said  act,  shall,  if  such  bank  be  found 
by  the  Comptroller  of  the  Currency  to  be  in  good  standing  and 
credit,  receive  such  authority  in  preference  to  new  associations 
applying  for  the  same.  .  .  . 

[Approved,  March  3,  1865.    13  Statutes  at  Large,  469.J 


1865.]  BANK    CIRCULATION    APPORTIONED.  199 

1864-65,  Chap.  LXXXII.  —  An  Act  to  amend  an  Act  entitled 

"An  Act  to  provide  a  National  Currency,  secured  by  a 

fledge  of  United  States  Bonds,  and  to  provide  for  the 

Circulation  and  Redemption  thereof." 

Be  it  enacted,  .  .  .  That  section  twenty-one  of  said  act  be  sc 

amended  that  said  section  shall  read  as  follows  : 

[In  lieu  of  the  concluding  sentence  of  said  section  "  and  at  no  time 
shall  the  total  amount  of  such  notes  .  .  .  exceed  the  amount  ...  of  its 
capital  stock  "  the  following  is  substituted  :  ] 

.  .  .  and  the  amount  of  said  circulating  notes  to  be  furnished 
to  each  association  shall  be  in  proportion  to  its  paid-up  capital 
as  follows,  and  no  more :  To  each  association  whose  capital  shall 
not  exceed  five  hundred  thousand  dollars,  ninety  per  centum  of 
such  capital ;  to  each  association  whose  capital  exceeds  five  hun- 
dred thousand  dollars,  but  does  not  exceed  one  million  dollars, 
eighty  per  centum  of  such  capital ;  to  each  association  whose 
capital  exceeds  one  million  dollars,  but  does  not  exceed  three 
millions  of  dollars,  seventy-five  per  centum  of  such  capital ;  to 
each  association  whose  capital  exceeds  three  millions  of  dollars, 
sixty  per  centum  of  such  capital.  And  that  one  hundred  and  fifty 
millions  of  dollars  of  the  entire  amount  of  circulating  notes 
authorized  to  be  issued  shall  be  apportioned  to  associations  in 
the  States,  in  the  District  of  Columbia,  and  in  the  Territories, 
according  to  representative  population,  and  the  remainder  shall 
be  apportioned  by  the  Secretary  of  the  Treasury  among  asso- 
ciations formed  in  the  several  States,  in  the  District  of  Columbia, 
and  in  the  Territories,  having  due  regard  to  the  existing  bank- 
ing capital,  resources,  and  business  of  such  States,  District,  and 
Territories. 

[Approved,  March  3, 1865.    13  Statutes  at  Large,  498.] 

1865-66,  Chap.  XXVIII.  —  An  Act  to  amend  an  Act  entitled 
"  An  Act  to  provide  Ways  and  Means  to  support  the 
Government"  approved  March  third,  eighteen  hundred 
and  sixty-Jive. 

Be  it  enacted,  .  .  .  That  the  act  entitled  "  An  act  to  provide 
ways  and  means  to  support  the  Government,"  approved  March 


200  REDUCTION   OF   CURRENCY   LIMITED.  [1867. 

third,  eighteen  hundred  and  sixty-five,  shall  be  extended  and 
construed  to  authorize  the  Secretary  of  the  Treasury,  at  his  dis- 
cretion, to  receive  any  treasury  notes  or  other  obligations  issued 
under  any  act  of  Congress,  whether  bearing  interest  or  not,  in 
exchange  for  any  description  of  bonds  authorized  by  the  act  to 
which  this  is  an  amendment ;  and  also  to  dispose  of  any  descrip- 
tion of  bonds  authorized  by  said  act,  either  in  the  United  Stages 
or  elsewhere,  to  such  an  amount,  in  such  manner,  and  at  such 
rates  as  he  may  think  advisable,  for  lawful  money  of  the  United 
States,  or  for  any  treasury  notes,  certificates  of  indebtedness,  or 
certificates  of  deposit,  or  other  representatives  of  value,  which 
have  been  or  which  may  be  issued  under  any  act  of  Congress, 
the  proceeds  thereof  to  be  used  only  for  retiring  treasury  notes 
or  other  obligations  issued  under  any  act  of  Congress ;  but 
nothing  herein  contained  shall  be  construed  to  authorize  any  in- 
crease of  the  public  debt :  Provided,  That  of  United  States 
notes  not  more  than  ten  millions  of  dollars  may  be  retired  and 
cancelled  within  six  months  from  the  passage  of  this  act,  and 
thereafter  not  more  than  four  millions  of  dollars  in  any  one 
mouth:  And  provided  further,  That  the  act  to  which  this  is  an 
amendment  shall  continue  in  full  force  in  all  its  provisions,  ex- 
cept as  modified  by  this  act. 

[Section  2  requires  the  Secretary  of  the  Treasury  to  report  to  Congress 
at  its  next  session  all  transactions  under  this  act  and  the  act  to  which 
this  is  an  amendment.] 

[Approved,  April  12,  1866.     14  Statutes  at  Large,  31.] 

18S6-67,  Chap.  CXCIV.  —  An  Act  to  provide  Ways   and 
Means  for  the  Payment  of  Compound  Interest  Notes. 

[This  act  directs  the  Secretary  of  the  Treasury,  for  the  purpose  of 
redeeming  any  outstanding  compound  interest  notes,  to  issue  temporary 
loan  certificates  as  prescribed  by  section  4  of  the  act  of  February  25, 
1862,  bearing  interest  not  exceeding  three  per  cent,  per  annum,  and  prin- 
cipal and  interest  payable  in  lawful  money  on  demand ;  the  amount  of 
certificates  at  any  time  outstanding  not  to  exceed  fifty  millions  of  dollars, 


1868.]  REDUCTION    OF    CURRENCY   SUSPENDED.  201 

And  said  certificates  may  be  held  by  any  national  bank  as  part  of  the 
reserve  required  by  sections  31  and  32  of  the  National  Currency  Act  of 
June  3,  1804 ;  but  not  less  than  two-fifths  of  the  entire  reserve  of  such 
bank  shall  consist  of  lawful  money.] 

[Approved,  March  2,  18G7.    14  Statutes  at  Large,  658.J 

1867-68,  Chap.  VI.  —  An  Act  to  suspend  further  Reduction 
of  the  Currency. 

Be  it  enacted,  .  .  .  That  from  and  after  the  passage  of  this 
act,  the  authority  of  the  Secretary  of  the  Treasury  to  make  any 
reduction  of  the  currency,  by  retiring  or  cancelling  United 
States  notes,  shall  be,  and  is  hereby,  suspended ;  but  nothing 
herein  contained  shall  prevent  the  cancellation  and  destruction 
of  mutilated  United  States  notes,  and  the  replacing  of  the  same 
with  notes  of  the  same  character  and  amount. 

NOTK.  —  The  above  act  having  been  presented  to  the  President  of  the 
United  States  for  his  approval,  anil  not  having  been  returned  by  him  to 
the  House  of  Congress  in  which  it  originated  within  the  time  prescribed 
by  the  Constitution,  became  a  law  without  his  approval,  February  4, 
1868. 

[15  Statutes  at  Large,  34.] 

1867-68,  Chap.  CCXXXVII.  — -An  Act  to  provide  for  a 
further  Issue  of  temporary  Loan  Certificates,  for  the 
Purpose  of  redeeming  and  retiring  the  Remainder  of  the 
outstanding  Compound  Interest  Notes. 

[For  the  sole  purpose  of  redeeming  the  remainder  of  the  compound 
interest  notes,  this  act  adds  twenty-five  millions  of  dollars  to  the  amount 
of  three  per  cent,  temporary  loan  certificates  authorized  by  the  act  of 
March  2,  1867.] 

[Approved,  July  25,  1868.     15  Statutes  at  Large,  183.1 

1868-69,  Chap.  XXXII.  —  An  Act  to  prevent  loaning  Money 
upon  United  States  Notes. 

Be  it  enacted,  .  .  .  That  no  national  banking  association  shall 
hereafter  offer  or  receive  United  States  notes  or  national  bank 
notes  as  security  or  as  collateral  security  for  any  loan  of  money, 
or  for  a  consideration  shall  agree  to  withhold  the  same  from 
use,  or  shall  offer  or  receive  the  custody  or  promise  of  custody 


202        FAITH  OF  THE  UNITED  STATES  PLEDGED.     [1869. 

of  such  notes  as  security,  or  as  collateral  security,  or  considera- 
tion for  any  loan  of  money.  .  .  . 

[Approved,  February  19,  1869.    15  Statutes  at  Large,  270.] 

1869,  Chap.  I.  —  An  Act  to  strengthen  the  Public  Credit. 

Be  it  enacted,  .  .  .  That  in  order  to  remove  any  doubt  as  to 
the  purpose  of  the  government  to  discharge  all  just  obligations 
to  the  public  creditors,  and  to  settle  conflicting  questions  and  in- 
terpretations of  the  laws  by  virtue  of  which  such  obligations 
have  been  contracted,  it  is  hereby  provided  and  declared  that 
the  faith  of  the  United  States  is  solemnly  pledged  to  the  pay- 
ment in  coin  or  its  equivalent  of  all  the  obligations  of  the  United 
States  not  bearing  interest,  known  as  United  States  notes,  and 
of  all  the  interest-bearing  obligations  of  the  United  States,  ex- 
cept in  cases  where  the  law  authorizing  the  issue  of  any  such 
obligation  has  expressly  provided  that  the  same  may  be  paid  in 
lawful  money  or  other  currency  than  gold  or  silver.  But  none 
of  said  interest-bearing  obligations  not  already  due  shall  be  re- 
deemed or  paid  before  maturity  unless  at  such  time  United 
States  notes  shall  be  convertible  into  coin  at  the  option  of  the 
holder,  or  unless  at  such  time  bonds  of  the  United  States  bear- 
ing a  lower  rate  of  interest  than  the  bonds  to  be  redeemed  can 
be  sold  at  par  in  coin.  And  the  United  States  also  solemnly 
pledges  its  faith  to  make  provision  at  the  earliest  practicable 
period  for  the  redemption  of  the  United  States  notes  in  coin. 

[Approved,  March  18,  1869.     16  Statutes  at  Large,  1.] 

1869-70,  Chap.  CCLII.  — An  Act  to  provide  for  the  Redemp- 
tion of  the  three  per  cent,  temporary  Loan  Certificates, 
and  for  an  Increase  of  National  Hank  Notes. 
Be  it  enacted,  .  .  .  That  fifty-four  millions  of  dollars  in  notes 
for  circulation  may  be  issued  to  national  banking  associations, 
in  addition  to  the  three  hundred  millions  of  dollars  authorized 
by  the  twenty-second  section  of  the  "  Act  to  provide  a  national 
currency,  secured  by  a  pledge  of  United  States  bonds,  and  to 
provide  foi  the  circulation  and  redemption  thereof,"  approved 


1870.]  INCREASE   OF   BANK   CIRCULATION.  203 

Juue  three,  eighteen  hundred  and  sixty -four;  and  the  amount 
of  notes  so  provided  shall  be  furnished  to  banking  associations 
organized  or  to  be  organized  in  those  States  and  Territories 
having  less  than  their  proportion  under  the  apportionment  con- 
templated by  the  provisions  of  the  "•  Act  to  amend  an  act  to 
provide  a  national  currency,  secured  by  a  pledge  of  United 
States  bonds,  and  to  provide  for  the  circulation  and  redemption 
thereof,"  approved  March  three,  eighteen  hundred  and  sixty- 
five,  and  the  bonds  deposited  with  the  Treasurer  of  the  United 
States,  to  secure  the  additional  circulating  notes  herein  author- 
ized, shall  be  of  any  description  of  bonds  of  the  United  States 
bearing  interest  in  coin,  but  a  new  apportionment  of  the  in- 
creased circulation  herein  provided  for  shall  be  made  as  soon  as 
practicable,  based  upon  the  census  of  eighteen  hundred  and  sev- 
enty: Provided,  That  if  applications  for  the  circulation  herein 
authorized  shall  not  be  made  within  one  year  after  the  passage 
of  this  act  by  banking  associations  organized  or  to  be  organized 
in  States  having  less  than  their  proportion,  it  shall  be  lawful  for 
the  Comptroller  of  the  Currency  to  issue  such  circulation  to 
banking  associations  applying  for  the  same  in  other  States  or 
Territories  having  less  than  their  proportion,  giving  the  prefer- 
ence to  such  as  have  the  greatest  deficiency :  And  provided, 
further,  That  no  banking  association  hereafter  organized  shall 
have  a  circulation  in  excess  of  five  hundred  thousand  dollars. 

[Section  2  provides  that  at  the  end  of  every  month  the  Secretary  of 
the  Treasury  shall  call  in  and  redeem  an  amount  of  the  three  per  cent, 
temporary  loan  certificates  issued  under  the  Acts  of  March  2,  1867,  and 
July  25,  1868,  not  less  than  the  amount  of  circulating  notes  issued  to  na- 
tional banking  associations  under  the  preceding  section  during  the  pre- 
vious month.] 

SEC.  3.  And  be  it  further  enacted,  That  upon  the  deposit  of 
any  United  States  bonds,  bearing  interest  payable  in  gold,  with 
the  Treasurer  of  the  United  States,  in  the  manner  prescribed  in 
the  nineteenth  and  twentieth  sections  of  the  national  currency 
act,  it  shall  be  lawful  for  the  Comptroller  of  the  Currency  to 
issue  to  the  association  making  the  same,  circulating  notes  of 
different  denominations,  not  less  than  five  dollars,  not  exceeding 
in  amount  eighty  per  centum  of  the  par  value  of  the  bonds  de- 


204  GOLD    BANKS.  [1870. 

posited,  which  notes  shall  bear  upon  their  face  the  promise  of 
the  association  to  which  they  are  issued  to  pay  them,  upon  pres- 
entation at  the  office  of  the  association,  in  gold  coin  of  the 
United  States,  and  shall  be  redeemable  upon  such  presentation 
in  such  coin  :  Provided,  That  no  banking  association  organized 
under  this  section  shall  have  a  circulation  in  excess  of  one  mil- 
lion of  dollars. 

SEC.  4.  And  be  it  further  enacted,  That  every  national  bank- 
ing association  formed  under  the  provisions  of  the  preceding 
section  of  this  act  shall  at  all  times  keep  on  hand  not  less  than 
twenty-five  per  centum  of  its  outstanding  circulation  in  gold  or 
silver  coin  of  the  United  States,  and  shall  receive  at  par  in  the 
payment  of  debts  the  gold  notes  of  every  other  such  banking 
association  which  at  the  time  of  such  payments  shall  be  redeem- 
ing its  circulating  notes  in  gold  coin  of  the  United  States. 

SEC.  5.  And  be  it  further  enacted,  That  every  association  or- 
ganized for  the  purpose  of  issuing  gold  notes  as  provided  in  this 
act  shall  be  subject  to  all  the  requirements  and  provisions  of  the 
national  currency  act,  except  the  first  clause  of  section  twenty- 
two,  which  limits  the  circulation  of  national  banking  associations 
to  three  hundred  millions  of  dollars ;  the  first  clause  of  section 
thirty -two,  which,  taken  in  connection  with  the  preceding  section, 
would  require  national  banking  associations  organized  in  the 
city  of  San  Francisco  to  redeem  their  circulating  notes  at  par 
in  the  city  of  New  York ;  and  the  last  clause  of  section  thirty- 
two,  which  requires  every  national  banking  association  to  re- 
ceive in  payment  of  debts  the  notes  of  every  other  national 
banking  association  at  par :  Provided,  That  in  applying  the  pro- 
visions and  requirements  of  said  act  to  the  banking  associations 
herein  provided  for,  the  terms  "  lawful  money,"  arid  "  lawful 
money  of  the  United  States,"  shall  be  held  and  construed  to 
mean  gold  or  silver  coin  of  the  United  States. 

SEC.  6.  And  be  it  further  enacted,  That  to  secure  a  more 
equitable  distribution  of  the  national  banking  currency  there 
may  be  issued  circulating  notes  to  banking  associations  organized 
in  States  and  Territories  having  less  than  their  proportion  as 
herein  set  forth.  And  the  amounts  of  circulation  in  this  section 
authorized  shall,  under  the  direction  of  the  Secretary  of  the 


1870.]  FUNDING  LOAN.  205 

Treasury,  as  it  may  be  required  for  this  purpose,  be  withdrawn, 
as  herein  provided,  from  banking  associations  organized  in  States 
having  a  circulation  exceeding  that  provided  for  by  the  act  en- 
titled "  An  act  to  amend  an  act  entitled  '  An  act  to  provide  for 
a  national  banking  currency,  secured  by  pledge  of  United  States 
bonds,  and  to  provide  for  the  circulation  and  redemption 
thereof/ "  approved  March  three,  eighteen  hundred  and  sixty- 
five,  but  the  amount  so  withdrawn  shall  not  exceed  twenty-five 
million  dollars. 

[It  is  then  provided  that  the  redistribution  shall  be  made,  when  re- 
quired, by  withdrawing  from  banks  having  a  circulation  exceeding  one 
million  dollars  such  excess,  in  States  having  more  than  their  proportion ; 
and  then  from  banks  having  a  circulation  exceeding  three  hundred  thou- 
sand dollars  their  excess  over  that  amount,  beginning  with  States  having 
the  largest  proportion  in  excess,  and  proceeding,  if  necessary,  to  those 
having  a  smaller  proportion.  Upon  the  failure  of  any  association  to  re- 
tire the  amount  of  its  circulation  required  as  above,  the  Comptroller  of 
the  Currency  is  authorized  to  sell  the  necessary  amount  of  its  bonds  and 
to  redeem  its  notes  to  the  amount  required,  But  no  circulation  is  to  be 
withdrawn  under  this  section  until  the  fifty-four  millions  granted  in  sec- 
tion 1  shall  have  been  taken  up. 

Section  7  provides  that  after  six  months  from  the  passage  of  this  act 
any  association  may  be  removed  from  any  State  having  more  than  its 
proportion  of  circulation  to  any  State  having  less  than  its  proportion ; 
but  the  amount  of  the  issue  of  said  association  shall  not  be  deducted 
from  the  new  issue  herein  provided  for.] 

[Approved,  July  12,  1870.    16  Statutes  at  Large,  251.] 

1869-70,  Chap.  CCLVI.  —  An  Act  to  authorize  the  Refund- 
ing of  the  National  Debt. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  ig 
hereby  authorized  to  issue,  in  a  sum  or  sums  not  exceeding  in 
the  aggregate  two  hundred  million  dollars,  coupon  or  registered 
bonds  of  the  United  States,  in  such  form  as  he  may  prescribe, 
and  of  denominations  of  fifty  dollars,  or  some  multiple  of  that 
sum,  redeemable  in  coin  of  the  present  standard  value,  at  the 
pleasure  of  the  United  States,  after  ten  years  from  the  date  of 
their  issue,  and  bearing  interest,  payable  semi-annually  in  such 
coin,  at  the  rate  of  five  per  cent,  per  annum ;  also  a  sum  or  sums 
not  exceeding  in  the  aggregate  three  hundred  million  dollars  of 


206  FUNDING   LOAN.  [1870. 

like  bonds,  the  same  in  all  respects,  but  payable  at  the  pleasure 
of  the  United  States,  after  fifteen  years  from  the  date  of  their 
issue,  and  bearing  interest  at  the  rate  of  four  and  a  half  per 
cent,  per  annum ;  also  a  sum  or  sums  not  exceeding  in  the 
aggregate  one  thousand  million  dollars  of  like  bonds,  the  same 
in  all  respects,  but  payable  at  the  pleasure  of  the  United  States, 
after  thirty  years  from  the  date  of  their  issue,  and  bearing  inter- 
est at  the  rate  of  four  per  cent,  per  annum  ;  all  of  which  said 
several  classes  of  bonds  and  the  interest  thereon  shall  be  ex- 
empt from  the  payment  of  all  taxes  or  duties  of  the  United 
States,  as  well  as  from  taxation  in  any  form  by  or  under 
State,  municipal,  or  local  authority;  and  the  said  bonds  shall 
have  set  forth  and  expressed  upon  their  face  the  above-specified 
conditions,  and  shall,  with  their  coupons,  be  made  payable  at  the 
Treasury  of  the  United  States.  But  nothing  in  this  act,  or  iu 
any  other  law  now  in  force,  shall  be  construed  to  authorize  any 
increase  whatever  of  the  bonded  debt  of  the  United  States. 

[By  the  amendatory  Act  of  January  20,  1871,  the  amount  of  bonds 
to  be  issued  bearing  interest  at  five  per  cent,  is  increased  to  five  hundred 
millions  of  dollars,  but  without  any  increase  of  the  total  amount  of  bonds 
provided  for  above  ;  and  the  Secretary  of  the  Treasury  is  authorized  to 
make  the  interest  of  any  of  the  bonds  so  provided  for  payable  quarter- 
yearly.  16  Statutes  at  Large,  391).  By  an  act  of  December  17,  1873,  it 
is  provided  that  the  holders  of  bonds  of  the  loan  of  1858  may,  if  they  so 
elect,  exchange  the  same,  on  or  before  February  1,  1874,  for  bonds  of  the 
funded  loan  of  1870.  18  Statutes  at  Large,  1.]  ' 

SEC.  2.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized  to  sell  and  dispose  of  any  of  the 
bonds  issued  under  this  act,  at  not  less  than  their  par  value  for 
coin,  and  to  apply  the  proceeds  thereof  to  the  redemption  of  any 
of  the  bonds  of  the  United  States  outstanding,  and  known  as  five- 
twenty  bonds,  at  their  par  value,  or  he  may  exchange  the  same 
for  such  five-twenty  bonds,  par  for  par;  but  the  bonds  hereby 
authorized  shall  be  used  for  no  other  purpose  whatsoever.  And 
a  sum  not  exceeding  one-half  of  one  per  cent,  of  the  bonds 
herein  authorized  is  hereby  appropriated  to  pay  the  expense  of 
preparing,  issuing,  advertising,  and  disposing  of  the  same. 


1870.]  DEPOSITS   OF   GOLD.  207 

[Section  3  provides  that,  after  the  maturity  of  any  of  the  bonds  herein 
authorized,  payment  thereof  shall  be  made  at  the  discretion  of  the  Secre- 
tary of  the  Treasury,  the  bonds  to  be  called  for  by  public  notice  specify- 
ing their  dates  and  numbers,  beginning  with  the  bonds  last  dated  and 
numbered,  and  the  interest  on  bonds  thus  selected  ceasing  three  months 
after  the  date  of  such  notice.  Section  4  authorizes  the  Secretary,  with  any 
coin  that  is  lawfully  applicable,  to  pay  at  par  and  cancel  any  of  the  five- 
twenty  bonds  that  may  become  redeemable  by  the  terms  of  their  issue ; 
the  bonds  to  be  called  for  by  public  notice  as  above,  interest  ceasing  in 
like  manner,  and  the  bonds  to  be  called  in  numerical  order,  beginning 
with  the  bonds  first  numbered  and  issued.] 

SEC.  5.  And  be  it  further  enacted,  That  the  Secretary  of  the 
Treasury  is  hereby  authorized,  at  any  time  within  two  years 
from  the  passage  of  this  act,  to  receive  gold  coin  of  the  United 
States  on  deposit  for  not  less  than  thirty  days,  in  sums  of  not 
less  than  one  hundred  dollars,  with  the  Treasurer,  or  any  Assist- 
ant Treasurer  of  the  United  States  authorized  by  the  Secretary 
of  the  Treasury  to  receive  the  same,  who  shall  issue  therefor 
certificates  of  deposit,  made  in  such  form  as  the  Secretary  of  the 
Treasury  shall  prescribe,  and  said  certificates  of  deposit  shall 
bear  interest 'at  a  rate  not  exceeding  two  and  a  half  per  cent, 
per  annum ;  and  any  amount  of  gold  coin  so  deposited  may  be 
withdrawn  from  deposit  at  any  time  after  thirty  days  from  the 
date  of  deposit,  and  after  ten  days'  notice  and  on  the  return  of 
said  certificates  :  Provided,  That  the  interest  on  all  such  de- 
posits shall  cease,  and  determine  at  the  pleasure  of  the  Secretary 
of  the  Treasury.  And  not  less  than  twenty -five  per  cent,  of  the 
coin  deposited  for  or  represented  by  said  certificates  of  deposits 
shall  be  retained  in  the  treasury  for  the  payment  of  said  certifi- 
cates ;  and  the  excess  beyond  twenty-five  per  cent,  may  be  ap- 
plied at  the  discretion  of  the  Secretary  of  the  Treasury  to  the 
payment  or  redemption  of  such  outstanding  bonds  of  the  United 
States  heretofore  issued  and  known  as  the  five-twenty  bonds,  as 
he  may  designate  under  the  provisions  of  the  fourth  section  cf 
this  act;  and  any  certificates  of  deposit  issued  as  aforesaid, 
may  be  received  at  par  with  the  interest  accrued  thereon  in  pay- 
ment for  any  bonds  authorized  to  be  issued  by  this  act. 

SEC.  6.  And  be  it  further  enacted,  That  the  United  States 
bonds  purchased  and  now  held  in  the  treasury  in  accordance 


208  SINKING  FUND:  BANKS  IN  LIQUIDATION.         [1870. 

with  the  provisions  relating  to  a  sinking  fund,  of  section  five  ot 
the  act  entitled  "  An  act  to  authorize  the  issue  of  United  States 
notes,  and  for  the  redemption  or  funding  thereof,  and  for  funding 
the  floating  debt  of  the  United  States,"  approved  February 
twenty-fifth,  eighteen  hundred  and  sixty-two,  and  all  other 
United  States  bonds  which  have  been  purchased  by  the  Secre- 
tary of  the  Treasury  with  surplus  funds  in  the  treasury,  and  no\v 
held  in  the  Treasury  of  the  United  States,  shall  be  cancelled 
and  destroyed,  a  detailed  record  of  such  bonds  so  cancelled  and 
destroyed  to  be  first  made  in  the  books  of  the  Treasury  Depart- 
ment. Any  bonds  hereafter  applied  to  said  sinking  fund,  and 
all  other  United  States  bonds  redeemed  or  paid  hereafter  by  the 
United  States,  shall  also  in  like  manner  be  recorded,  cancelled 
and  destroyed,  and  the  amount  of  the  bonds  of  each  class  that 
have  been  cancelled  and  destroyed  sha'l  be  deducted  respectively 
from  the  amount  of  each  class  of  the  outstanding  debt  of  the 
United  States.  In  addition  to  other  amounts  that  may  be  applied 
to  the  redemption  or  payment  of  the  public  debt,  an  amount  equal 
to  the  interest  on  all  bonds  belonging  to  the  aforesaid  sinking 
fund  shall  be  applied,  as  the  Secretary  of  the  Treasury  shall  from 
time  to  time  direct,  to  the  payment  of  the  public  debt  as  pro- 
vided for  in  section  five  of  the  act  aforesaid.  And  the  amount 
so  to  be  applied  is  hereby  appropriated  annually  for  that  pur- 
pose, out  of  the  receipts  for  duties  on  imported  goods. 

[Approved,  July  14,  1870.     16  Statutes  at  Large,  272.] 

1869-70,  Chap.  CCLVII.  —  ^n  Act  to  require  national  Banks 
going  into  Liquidation  to  retire  their  circulating  Notes. 
Be  it  enacted,  .  .  .  That  every  bank  that  has  heretofore 
gone  into  liquidation  under  the  provisions  of  section  forty- 
two  of  the  national  currency  act,  shall  be  required  to  deposit 
lawful  money  of  the  United  States  for  its  outstanding  circula- 
tion within  sixty  days  from  the  date  of  the  passage  of  this 
act.  And  every  bank  that  may  hereafter  go  into  liquidation 
shall  be  required  to  deposit  lawful  money  of  the  United  States 
for  its  outstanding  circulation  within  six  months  from  the 
date  of  the  vote  to  go  into  liquidation  ;  whereupon  the  bonds 


1872.]  CERTIFICATES    OF    DEPOSIT.  209 

pledged  as  security  for  such  circulation  shall  be  surrendered 
to  the  association  making  such  deposit.  And  if  any  bank 
shall  fail  to  make  the  deposit  and  take  up  its  bonds  for  thirty 
daj-s  after  the  expiration  of  the  time  specified,  the  comptroller 
of  the  currency  shall  have  power  to  sell  the  bonds  pledged  for 
the  circulation  of  said  bank  at  public  auction  in  New  York 
city,  and  after  providing  for  the  redemption  and  cancellation 
of  said  circulation,  and  the  necessary  expenses  of  the  sale,  to 
pay  over  any  balance  remaining  from  the  proceeds  to  the  bank, 
or  its  legal  representative  :  Provided,  That  banks  which  are 
winding  up  in  good  faith  for  the  purpose  of  consolidating  with 
other  banks  shall  be  exempt  from  the  provisions  of  this  act : 
And  provided  further,  That  the  assets  and  liabilities  of  banks 
so  in  liquidation  shall  be  reported  by  the  banks  with  which 
they  are  in  process  of  consolidation. 

[Approved,  July  14,  1870.    16  Statutes  at  Large,  274.] 

1871-72,  Chap.  CCCXLVI  —  An  Act  for  the  better  Security 
of  Bank  Reserves,  and  to  facilitate  Bank  Clearing-house 
Exchanges. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  to  receive  United  States  notes  on  deposit, 
without  interest,  from  national  banking  associations,  in  sums  not 
less  than  ten  thousand  dollars,  and  to  issue  certificates  therefor 
in  such  form  as  the  secretary  may  prescribe,  in  denominations 
of  not  less  than  five  thousand  dollars ;  which  certificate  shall  be 
payable  on  demand  in  United  States  notes,  at  the  place  where 
the  deposits  were  made. 

SEC.  2.  That  the  United  States  notes  so  deposited  in  the 
Treasury  of  the  United  States  shall  not  be  counted  as  part  of 
the  legal  reserve ;  but  the  certificates  issued  therefor  may  ba 
held  and  counted  by  national  banks  as  part  of  their  legal  re- 
serve, and  may  be  accepted  in  the  settlement  of  clearing-house 
balances  at  the  places  where  the  deposits  therefor  were  made. 

SEC.  3.  That  nothing  contained  in  this  act  shall  be  construed 
to  authorize  any  expansion  or  contraction  of  the  currency ;  and 
the  United  States  notes  for  which  such  certificates  are  issued,  or 
other  United  States  notes  of  like  amount,  shall  be  held  as  spe- 

14 


210      FIVE  PER  CENT.  RESERVE  FOR  BANK  NOTES.   [1874. 

cial  deposits  in  the  treasury,  and  used  only  for  the  redemption 
of  such  certificates. 

[Approved,  June  8,  1872.    17  Statutes  at  Large,  336.] 

1873-74,  Chap.  CCCXLIII.  —  An  Act  fixing  the  Amount  of 
United  States  Notes,  providing  for  a  Redistribution  of 
the  National  Bank  Currency,  and  for  other  Purposes. 

Be  it  enacted,  .  .  .  That  the  act  entitled  "  An  act  to  provide 
a  national  currency  secured  by  a  pledge  of  United  States  bonds, 
and  to  provide  for  the  circulation  and  redemption  thereof,"  ap- 
proved June  third,  eighteen  hundred  and  sixty-four,  shall  be 
hereafter  known  as  "  the  national  bank  act." 

SEC.  2.  That  section  thirty-one  of  the  "  national  bank  act"  be 
so  amended  that  the  several  associations  therein  provided  for  shall 
not  hereafter  be  required  to  keep  on  hand  any  amount  of  money 
whatever,  by  reason  of  the  amount  of  their  respective  circula- 
tions ;  but  the  moneys  required  by  said  section  to  be  kept  at  all 
times  on  hand  shall  be  determined  by  the  amount  of  deposits  in 
all  respects,  as  provided  for  in  the  said  section. 

SEC.  3.  That  every  association  organized,  or  to  be  organized, 
under  the  provisions  of  the  said  act,  and  of  the  several  acts 
amendatory  thereof,  shall  at  all  times  keep  and  have  on  deposit 
in  the  Treasury  of  the  United  States,  in  lawful  money  of  the 
United  States,  a  sum  equal  to  five  per  centum  of  its  circulation, 
to  be  held  and  used  for  the  redemption  of  such  circulation ; 
which  sum  shall  be  counted  as  a  part  of  its  lawful  reserve,  as 
provided  in  section  t^vo  of  this  act;  and  when  the  circulating 
notes  of  any  such  associations,  assorted  or  unassorted,  shall  be 
presented  for  redemption,  in  sums  of  one  thousand  dollars,  or 
any  multiple  thereof,  to  the  Treasurer  of  the  United  States,  the 
same  shall  be  redeemed  in  United  States  notes.  All  notes  so 
redeemed  shall  be  charged  by  the  Treasurer  of  the  United  States 
to  the  respective  associations  issuing  the  same,  and  he  shall  notify 
them  severally,  on  the  first  day  of  each  month,  or  oftener,  at 
his  discretion,  of  the  amount  of  such  redemptions  ;  and  when- 
ever such  redemptions  for  any  association  shall  amount  to  the 
sum  of  five  hundred  dollars,  such  association  so  notified  shall 


1874.]  REDEMPTION    OF    BANK   NOTES.  211 

forthwith  deposit  with  the  Treasurer  of  the  United  States  a  sum 
in  United  States  notes  equal  to  the  amount  of  its  circulating 
notes  so  redeemed.  And  all  notes  of  national  banks  worn,  de- 
faced, mutilated,  or  otherwise  unfit  for  circulation  shall,  when 
received  by  any  Assistant  Treasurer  or  at  any  designated  de- 
pository of  the  United  States,  be  forwarded  to  the  Treasurer  of 
the  United  States  for  redemption  as  provided  herein.  And 
when  such  redemptions  have  been  so  reimbursed,  the  circulating 
notes  so  redeemed  shall  be  forwarded  to  the  respective  associa- 
tions by  which  they  were  issued ;  but  if  any  of  such  notes  are 
worn,  mutilated,  defaced,  or  rendered  otherwise  unfit  for  use, 
they  shall  be  forwarded  to  the  Comptroller  of  the  Currency  and 
destroyed  and  replaced  as  now  provided  by  law  :  Provided,  That 
each  of  said  associations  shall  reimburse  to  the  treasury  the 
charges  for  transportation,  and  the  costs  for  assorting  such  notes ; 
and  the  associations  hereafter  organized  shall  also  severally  re- 
imburse to  the  treasury  the  cost  of  engraving  such  plates  as  shall 
be  ordered  by  each  association  respectively;  and  the  amount 
assessed  upon  each  association  shall  be  in  proportion  to  the  cir- 
culation redeemed,  and  be  charged  to  the  fund  on  deposit  with 
the  Treasurer:  And  provided  further,  That  so  much  of  section 
thirty-two  of  said  national  bank  act  requiring  or  permitting  the  re- 
demption of  its  circulating  notes  elsewhere  than  at  its  own  counter, 
except  as  provided  for  in  this  section,  is  hereby  repealed. 

SEC.  4.  That  any  association  organized  under  this  act,  or  any 
of  the  acts  of  which  this  is  an  amendment,  desiring  to  withdraw 
its  circulating  notes,  in  whole  or  in  part,  may,  upon  the  deposit 
of  lawful  money  with  the  Treasurer  of  the  United  States  in 
sums  of  not  less  than  nine  thousand  dollars,  take  up  the  bonds 
which  said  association  has  on  deposit  with  the  Treasurer  for  the 
security  of  such  circulating  notes ;  which  bonds  shall  be  assigned 
to  the  bank  in  the  manner  specified  in  the  nineteenth  section  of 
the  national  bank  act ;  and  the  outstanding  notes  of  said  asso- 
ciation, to  an  amount  equal  to  the  legal  tender  notes  deposited, 
shall  be  redeemed  at  the  Treasury  of  the  United  States,  and 
destroyed  as  now  provided  by  law :  Provided,  That  the  amount 
of  the  bonds  on  deposit  for  circulation  shall  not  be  reduced  be- 
low fifty  thousand  dollars. 


212  NEW   LIMIT   OF    LEGAL   TENI>ER   NOTES.  [1874. 

SEC.  5.  That  the  Comptroller  of  the  Currency  shall,  under 
such  rules  and  regulations  as  the  Secretary  of  the  Treasury  may 
prescribe,  cause  the  charter  numbers  of  the  association  to  be 
printed  upon  all  national  bank  notes  which  may  be  hereafter 
issued  by  him. 

SEC.  6.  That  the  amount  of  United  States  notes  outstanding 
and  to  be  used  as  a  part  of  the  circulating  medium,  shall  not  ex- 
ceed the  sum  of  three  hundred  and  eighty-two  million  dollars, 
which  said  sum  shall  appear  in  each  monthly  statement  of  the 
public  debt,  and  no  part  thereof  shall  be  held  or  used  as  a  re- 
serve. ' 

SEC.  7.  That  so  much  of  the  act  entitled  "  An  act  to  pro- 
vide for  the  redemption  of  the  three  per  centum  temporary  loan 
certificates,  and  for  an  increase  of  national  bank  notes,"  as  pro- 
vides that  no  circulation  shall  be  withdrawn  under  the  provisions 
of  section  six  of  said  act,  until  after  the  fifty-four  millions 
granted  in  section  one  of  said  act  shall  have  been  taken  up,  is 
hereby  repealed ;  and  it  shall  be  the  duty  of  the  Comptroller  of 
the  Currency,  under  the  direction  of  the  Secretary  of  the  Treas- 
ury, to  proceed  forthwith,  and  he  is  hereby  authorized  and  re- 
quired, from  time  to  time,  as  applications  shall  be  duly  made 
therefor,  and  until  the  full  amount  of  fifty-five  million  dollars 
shall  be  withdrawn,  to  make  requisitions  upon  each  of  the  na- 
tional banks  described  in  said  section,  and  in  the  manner  therein 
provided,  organized  in  States  having  an  excess  of  circulation,  to 
withdraw  and  return  so  much  of  their  circulation  as  by  said  act 
may  be  apportioned  to  be  withdrawn  from  them,  or,  in  lieu 
thereof,  to  deposit  in  the  Treasury  of  the  United  States  lawful 
money  sufficient  to  redeem  such  circulation,  and  upon  the  return 
of  the  circulation  required,  or  the  deposit  of  lawful  money,  as 
herein  provided,  a  proportionate  amount  of  the  bonds  held  to 
secure  the  circulation  of  such  association  as  shall  make  such  re- 
turn or  deposit  shall  be  surrendered  to  it. 

SEC.  8.  That  upon  the  failure  of  the  national  banks  upon 
which  requisition  for  circulation  shall  be  made,  or  of  any  of 
them,  to  return  the  amount  required,  or  to  deposit  in  the  Treasury 
lawful  money  to  redeem  the  circulation  required,  within  thirty 
days,  the  Comptroller  of  the  Currency  shall  at  once  sell  as  pro- 


V 

1874.]  REDISTRIBUTION   OF   BANK   CIRCULATION.  213 

vided  in  section  forty-nine  of  the  national  currency  act,  approved 
June  third,  eighteen  hundred  and  sixty-four,  bonds  held  to  secure 
the  redemption  of  the  circulation  of  the  association  or  associa- 
tions which  shall  so  fail,  to  an  amount  sufficient  to  redeem  the 
circulation  required  of  such  association  or  associations,  and  with 
the  proceeds,  which  shall  be  deposited  in  the  Treasury  of  the 
United  States,  so  much  of  the  circulation  of  such  association  or 
associations  shall  be  redeemed  as  will  equal  the  amount  required 
and  not  returned,  and  if  there  be  any  excess  of  proceeds  over 
the  amount  required  for  such  redemption,  it  shall  be  returned  to 
the  association  or  associations  whose  bonds  shall  have  been  sold. 
And  it  shall  be  the  duty  of  the  Treasurer,  Assistant  Treasurers, 
designated  depositaries,  and  national  bank  depositaries  of  the 
United  States,  who  shall  be  kept  informed  by  the  Comptroller 
of  the  Currency  of  such  associations  as  shall  fail  to  return  circula- 
tion as  required,  to  assort  and  return  to  the  Treasury  for  redemp- 
tion the  notes  of  such  associations  as  shall  come  into  their  hands 
until  the  amount  required  shall  be  redeemed,  and  in  like  manner 
to  assort  and  return  to  the  Treasury,  for  redemption,  the  notes 
of  such  national  banks  as  have  failed,  or  gone  into  voluntary 
liquidation  for  the  purpose  of  winding  up  their  affairs,  and  of 
such  as  shall  hereafter  so  fail  or  go  into  liquidation. 

SEC.  9.  That  from  and  after  the  passage  of  this  act  it  shall 
be  lawful  for  the  Comptroller  of  the  Currency,  and  he  is  hereby 
required,  to  issue  circulating  notes,  without  delay,  as  applications 
therefor  are  made,  not  to  exceed  the  sum  of  fifty:five  million 
dollars,  to  associations  organized,  or  to  be  organized,  in  those 
States  and  Territories  having  less  than  their  proportion  of  cir- 
culation, under  an  apportionment  made  on  the  basis  of  population 
and  of  wealth,  as  shown  by  the  returns  of  the  census  of  eighteen 
hundred  and  seventy  ;  and  every  association  hereafter  organized 
shall  be  subject  to,  and  be  governed  by  the  rules,  restrictions, 
and  limitations,  and  possess  the  rights,  privileges,  and  franchises, 
now  or  hereafter  to  be  prescribed  by  law  as  to  national  banking 
associations,  with  the  same  power  to  amend,  alter,  and  repeal 
provided  by  "  the  national  bank  act : "  Provided,  That  the  whole 
amount  of  circulation  withdrawn  and  redeemed  from  banks  trans- 
acting business  shall  not  exceed  fifty-five  million  dollars,  and 


I 

214  SILVER   COINAGE.       FREE   BANKING.  [1875. 

that  such  circulation  shall  be  withdrawn  and  redeemed  as  it  shall 
be  necessary  to  supply  the  circulatiou  previously  issued  to  the 
banks  in  those  States  having  less  than  their  apportionment :  And 
provided  further,  That  not  more  than  thirty  million  dollars  shall 
be  withdrawn  and  redeemed  as  herein  contemplated  during  the 
fiscal  year  ending  June  thirtieth,  eighteen  hundred  and  seventy- 
fire. 

[Approved,  June  20,  1874.    18  Statutes  at  Large,  123.] 

1874-75,  Chap.  XV.  —  An  Act  to  provide  for  the  Resump- 
tion of  Specie  Payments. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  and  required,  as  rapidly  as  practicable,  to 
cause  to  be  coined  at  the  mints  of  the  United  States,  silver  coins 
of  the  denominations  of  ten,  twenty-five,  and  fifty  cents,  of 
standard  value,  and  to  issue  them  in  redemption  of  an  equal 
number  and  amount  of  fractional  currency  of  similar  denomina- 
tions, or,  at  his  discretion,  he  may  issue  such  silver  coins  through 
the  mints,  the  subtreasuries,  public  depositaries,  and  post-offices 
of  the  United  States  ;  and,  upon  such  issue,  he  is  hereby  author- 
ized and  required  to  redeem  an  equal  amount  of  such  fractional 
currency,  until  the  whole  amount  of  such  fractional  currency 
outstanding  shall  be  redeemed. 

[An  act  approved  April  17,  1876,  makes  further  provision  for  the 
issue  of  silver  coin  in  redemption  of  fractional  currency,  and  also  pro- 
vides that  the  fractional  currency  so  redeemed  shall  be  held  to  be  a  part 
of  the  sinking-fund,  and  that  interest  shall  be  computed  thereon,  as  in 
the  case  of  bonds  belonging  to  the  sinking-fund.  See  19  Statutes  at 
Large,  33,  and  also  ibid.,  215.] 

SEC.  2.  That  so  much  of  section  three  thousand  five  hun- 
dred and  twenty-four  of  the  Revised  Statutes  of  the  United 
States  as  provides  for  a  charge  of  one-fifth  of  one  per  centum 
for  converting  standard  gold  bullion  into  coin  is  hereby  repealed, 
and  hereafter  no  charge  shall  be  made  for  that  service. 

SEC.  3.  That  section  five  thousand  one  hundred  and  seventy- 
seven  of  the  Revised  Statutes  of  the  United  States,  limiting  the 
aggregate  amount  of  circulating  notes  of  national  banking  asso- 
ciations, be,  and  is  hereby,  repealed ;  and  each  existing  banking 
association  may  increase  its  circulating  notes  in  accordance  with 


1875.]        LEGAL   TENDER   NOTES.       SPECIE    PAYMENTS.  215 

existing  law  without  respect  to  said  aggregate  limit ;  and  new 
banking  associations  may  be  organized  in  accordance  with  existing 
law  without  respect  to  said  aggregate  limit ;  and  the  provisions  of 
law  for  the  withdrawal  and  redistribution  of  national  bank  cur- 
rency among  the  several  States  and  Territories  are  hereby  re- 
pealed. And  whenever,  and  so  often,  as  circulating  notes  shall  be 
issued  to  any  such  banking  association,  so  increasing  its  capital 
or  circulating  notes,  or  so  newly  organized  as  aforesaid,  it  shall  be 
the  duty  of  the  Secretary  of  the  Treasury  to  redeem  the  legal  ten- 
der United  States  notes  in  excess  only  of  three  hundred  millions  of 
dollars,  to  the  amount  of  eighty  per  centum  of  the  sum  of  national 
bank  notes  so  issued  to  any  such  banking  association  as  afore- 
said, and  to  continue  such  redemption  as  such  circulating  notes 
are  issued  until  there  shall  be  outstanding  the  sum  of  three 
hundred  million  dollars  of  such  legal  tender  United  States  notes, 
and  no  more.  And  on  and  after  the  first  day  of  January,  anno 
Domini  eighteen  hundred  and  seventy-nine,  the  Secretary  of  the 
Treasury  shall  redeem,  in  coin,  the  United  States  legal  tender 
notes  then  outstanding  on  their  presentation  for  redemption,  at 
the  office  of  the  Assistant  Treasurer  of  the  United  States  in  the 
city  of  New  York,  in  sums  of  not  less  than  fifty  dollars.  And  to 
enable  the  Secretary  of  the  Treasury  to  prepare  and  provide  for 
the  redemption  in  this  act  authorized  or  required,  he  is  author- 
ized to  use  any  surplus  revenues,  from  time  to  time,  in  the 
Treasury  not  otherwise  appropriated,  and  to  issue,  sell,  and  dis- 
pose of,  at  not  less  than  par,  in  coin,  either  of  the  descriptions 
of  bonds  of  the  United  States  described  in  the  Act  of  Congress 
approved  July  fourteenth,  eighteen  hundred  and  seventy,  entitled, 
"  An  Act  to  authorize  the  refunding  of  the  national  debt,"  with 
like  qualities,  privileges,  and  exemptions,  to  the  extent  necessary 
to  carry  this  act  into  full  effect,  and  to  use  the  proceeds  thereof 
for  the  purposes  aforesaid.  And  all  provisions  of  law  incon- 
sistent with  the  provisions  of  this  act  are  hereby  repealed. 

[The  limit  of  circulation  fixed  by  section  5177  of  the  Revised  Statutes 
is  that  prescribed  on  page  202  by  section  1  of  the  Act  of  July  12,  1870.] 

[Approved,  January  14,  1875.    18  Statutes  at  Large,  296.] 


216  NOTES    OF    GOLD   BANKS.       SINKING   FUND.  [1875. 

1874-75,  Chap.  XIX.  —  An  Act  to  remove  the  Limitation 
restricting  the  Circulation  of  Banking  Associations  issuing 
Notes  payable  in  Gold. 

Be  it  enacted,  .  .  .  That  so  much  of  section  five  thousand 
one  hundred  and  eighty-five  of  the  Revised  Statutes  of  the 
United  States  as  limits  the  circulation  of  banking  associations, 
organized  for  the  purpose  of  issuing  notes  payable  in  gold,  sev- 
erally to  one  million  dollars,  be,  and  the  same  is  hereby,  re- 
pealed ;  and  each  of  such  existing  banking  associations  may 
increase  its  circulating  notes,  and  new  banking  associations  may 
be  organized,  in  accordance  with  existing  law,  without  respect 
to  such  limitation. 

[Approved,  January  19,  1875.     18  Statutes  at  Large,  302.] 

[The  limit  of  circulation  fixed  by  section  5185  of  the  Revised  Statutes 
is  that  prescribed  on  page  204,  by  section  3  of  the  Act  of  July  12,  1870.] 

1874-75,  Chap.  CXXX.  —  An  Act  making  Appropriations 
for  sundry  Civil  Expenses  of  the  Government  for  the 
fiscal  year  ending  Jane  thirtieth,  eighteen  hundred  and 
seventy-six,  and  for  other  purposes. 

SEC.  11.  That  the  Secretary  of  the  Treasury  is  hereby  au- 
thorized, at  such  times  as  may  be  necessary,  for  the  purpose  of 
obtaining  bonds  for  the  sinking-fund,  in  compliance  with  sec- 
tions three  thousand  six  hundred  and  ninety-four  to  three  thou- 
sand six  hundred  and  ninety-seven,  inclusive,  of  the  Revised 
Statutes  of  the  United  States,  to  give  public  notice  that  he  will 
redeem,  in  coin,  at  par,  any  bonds  of  the  United  States,  bearing 
interest  at  the  rate  of  six  per  centum,  of  the  kind  known  as 
five-twenties ;  and  in  three  months  after  the  date  of  such  public 
notice,  the  interest  on  the  bonds  so  selected  and  called  for  pay- 
ment shall  cease. 

[Approved,  March  3,  1875.     18  Statutes  at  Large,  401.] 

[The  provisions  of  sections  3694-97  of  the  Revised  Statutes  are  the 
same  as  those  cf  section  5  of  the  Act  of  February  25,  1862,  on  page  165, 
and  section  6  of  the  Act  of  July  14,  1870,  on  page  207.] 


1879.]        LEGAL   TENDER  NOTES   NOT   TO   BE   RETIRED.  217 


1877-78,    Chap.   CXLVI.  —  An  Act  to  forbid  the  further 
retirement  of  United  /States  legal-tender  notes. 

Be  it  enacted,  .  .  .  That  from  and  after  the  passage  of  this 
act  it  shall  not  be  lawful  for  the  Secretary  of  the  Treasury  or 
other  officer  under  him  to  cancel  or  retire  any  more  of  the  United 
States  legal-tender  notes.  And  when  any  of  said  notes  may  be 
redeemed  or  be  received  into  the  Treasury  under  any  law  from 
any  source  whatever  and  shall  belong  to  the  United  States, 
they  shall  not  be  retired  cancelled  or  destroyed  but  they  shall 
be  reissued  and  paid  out  again  and  kept  in  circulation  :  Provided, 
That  nothing  herein  shall  prohibit  the  cancellation  and  destruc- 
tion of  mutilated  notes  and  the  issue  of  other  notes  of  like 
denomination  in  their  stead,  as  now  provided  by  law. 

All  acts  and  parts  of  acts  in  conflict  herewith  are  hereby 
repealed. 

[Approved,  May  81,  1878.    20  Statutes  at  Large,  87.] 


1878-79,  Chap.  XXIV.  —  An  Act  to  facilitate  the  refunding 
the  national  debt. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  in  the  process  of  refunding  the  national  debt 
under  existing  laws  to  exchange  directly  at  par  the  bonds  of  the 
United  States  bearing  interest  at  four  per  centum  per  annum 
authorized  by  law  for  the  bonds  of  the  United  States  commonly 
known  as  five-twenties  outstanding  and  uncalled,  and,  whenever 
all  such  five-twenty  bonds  shall  have  been  redeemed,  the  pro- 
visions of  this  section  and  all  existing  provisions  of  law  author- 
izing the  refunding  of  the  national  debt  shall  apply  to  any  bonds 
of  the  United  States  bearing  interest  at  five  per  centum  per 
annum  or  a  higher  rate,  which  may  be  redeemable.  In  any 
exchange  made  under  the  provisions  of  this  section  interest 
may  be  allowed,  on  the  bonds  redeemed,  for  a  period  of  three 
months. 

[Approved,  January  25,  1879.    20  Statutes  at  Large,  265.] 


218      REFUNDING.   CONVERSION  OF  GOLD  BANKS.   [1880. 

1878-79,  Chap.  CII.  —  An  Act  to  authorize  the  issue  of 
certificates  of  deposit  in  aid  of  the  refunding  of  the 
public  debt. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  and  directed  to  issue,  in  exchange  for  lawful 
money  of  the  United  States  that  may  be  presented  for  such 
exchange,  certificates  of  deposit,  of  the  denomination  of  ten 
dollars,  bearing  interest  at  the  rate  of  four  per  centum  per 
annum,  and  convertible  at  any  time,  with  accrued  interest  into 
the  four  per  centum  bouds  described  in  the  refunding  act :  and 
the  money  so  received  shall  be  applied  only  to  the  payment 
of  the  bonds  bearing  interest  at  a  rate  of  not  less  than  five  per 
centum  in  the  mode  prescribed  by  said  act,  and  he  is  authorized 
to  prescribe  suitable  rules  and  regulations  in  conformity  with 

this  act. 

[Approved,  February  26,  1879.    20  Statutes  at  Large,  321.] 

1879-80,  Chap.  XXV.  —  An  Act  authorizing  the  conversion 

of  national  gold  banks. 

Be  it  enacted,  .  .  .  That  any  national  gold  bank  organized 
under  the  provisions  of  the  laws  of  the  United  States,  may,  in 
the  manner  and  subject  to  the  provisions  prescribed  by  section 
fifty-one  hundred  and  fifty-four  of  the  Revised  Statutes  of  the 
United  States,  for  the  conversion  of  banks  incorporated  under 
the  laws  of  any  State,  cease  to  be  a  gold  bank,  and  become  such 
an  association  as  is  authorized,  by  section  fifty-one  hundred  and 
thirty-three,  for  carrying  on  the  business  of  banking,  and  shall 
have  the  same  powers  and  privileges,  and  shall  be  subject  to  the 
same  duties,  responsibilities,  and  rules,  in  all  respects,  as  are  by 
law  prescribed  for  such  associations  :  Provided,  That  all  certifi- 
cates of  organization  which  shall  be  issued  under  this  act  shall 
bear  the  date  of  the  original  organization  of  each  bank  respec- 
tively as  a  gold  bank. 

[Approved,  February  14,  1880.    21  Statutes  at  Large,  66.] 

[The  provisions  of  sections  5133  and  5151  of  the  Revised  Statutes  are 
in  substance  those  of  section  5  of  the  Act  of  June  3,  1864,  on  page  179, 
and  section  44  of  the  same  Act,  on  page  188.] 


1882.]       EXISTENCE   OF   NATIONAL    BANKS    EXTENDED.  219 


1880-81,  Chap,  cxxxui.  —  An  Act  making  appropriations 
for  sundry  civil  expenses  of  the^  Government  for  the 
fiscal  year  ending  June  thirtieth,  eighteen  hundred  and 
eighty-two,  and  for  other  purposes. 

SEC.  2.  That  the  Secretary  of  the  Treasury  may  at  any  time 
apply  the  surplus  money  in  the  Treasury  not  otherwise  appro- 
priated, or  so  much  thereof  as  he  may  consider  proper,  to  the 
purchase  or  redemption  of  United  States  bonds :  Provided,  That 
the  bonds  so  purchased  or  redeemed  shall  constitute  no  part  of 
the  sinking-fund,  but  shall  be  cancelled. 

[Approved,  March  3,  1881.    21  Statutes  at  Large,  457.1 


1881-82,  Chap.  CCXC.  —  An  Act  to  enable  national-banking 
associations  to  extend  their  corporate  existence,  and  for 
other  purposes. 

Be  it  enacted,  .  .  .  That  any  national  banking  association 
organized  under  the  acts  of  February  twenty-fifth,  eighteen 
hundred  and  sixty-three,  June  third,  eighteen  hundred  and  sixty- 
four,  and  February  fourteenth,  eighteen  hundred  and  eighty,  or 
under  sections  fifty-one  hundred  and  thirty-three,  fifty-one  hun- 
dred and  thirty-four,  fifty-one  hundred  and  thirty-five,  fifty-one 
hundred  and  thirty-six,  and  fifty-one  hundred  and  fifty-four  of 
the  Revised  Statutes  of  the  United  States,  may,  at  any  time 
within  the  two  years  next  previous  to  the  date  of  the  expiration 
of  its  corporate  existence  under  present  law,  and  with  the  ap- 
proval of  the  Comptroller  of  the  Currency,  to  be  granted  as 
hereinafter  provided,  extend  its  period  of  succession  by  amend- 
ing its  articles  of  association  for  a  term  of  not  more  than  twenty 
years  from  the  expiration  of  the  period  of  succession  named  in 
said  articles  of  association,  and  shall  have  succession  for  such 
extended  period,  unless  sooner  dissolved  by  the  act  of  share- 
holders owning  two  thirds  of  its  stock,  or  unless  its  franchise 
becomes  forfeited  by  some  violation  of  law,  or  unless  hereafter 
modified  or  repealed. 


220  NEW  ISSUE    OF   CIRCULATING   NOTES.  [1882. 

[The  sections  5133  5136  and  5154  of  the  Revised  Statutes  contain  in 
substance  the  provisions  of  sections  5,  6,  8,  and  44  of  the  Act  of  June  3, 
1864 ;  see  pages  179  and  188.] 

[Sections  2,  3,  and  4  provide  that  the  amended  articles  of  association 
must  receive  the  written  consent  of  shareholders  owning  not  less  than 
two  thirds  of  the  capital  stock,  and  shall  not  be  valid  until  the  Comptroller 
shall  have  certified  his  approval,  after  making  a  special  examination  of 
the  association  to  determine  its  condition ;  and  that  any  association  so 
extending  the  period  of  its  succession  "  shall  continue  to  be  in  all  respects 
the  identical  association  it  was  before  the  extension  of  its  period  of  suc- 
cession." 

Section  5  provides  that  any  shareholder  not  assenting  to  the  amended 
articles  shall  be  entitled  to  receive  the  appraised  value  of  his  shares,  and 
that  his  shares  shall  then  be  sold  at  public  sale.] 

SEC.  6.  That  the  circulating  notes  of  any  association  so  ex- 
tending the  period  of  its  succession  which  shall  have  been  issued 
to  it  prior  to  such  extension  shall  be  redeemed  at  the  Treasury 
of  the  United  States,  as  provided  in  section  three  of  the  act  of 
June  twentieth,  eighteen  hundred  and  seventy-four,  entitled  "  An 
act  fixing  the  amount  of  United  States  notes,  providing  for  re- 
distribution of  national-bank  currency,  and  for  other  purposes," 
and  such  notes  when  redeemed  shall  be  forwarded  to  the  Comp- 
troller of  the  Currency,  and  destroyed  as  now  provided  by  law ; 
and  at  the  end  of  three  years  from  the  date  of  the  extension  of 
the  corporate  existence  of  each  bank  the  association  so  extended 
shall  deposit  lawful  money  with  the  Treasurer  of  the  United 
States  sufficient  to  redeem  the  remainder  of  the  circulation 
which  was  outstanding  at  the  date  of  its  extension,  as  provided 
in  sections  fifty-two  hundred  and  twenty-two,  fifty-two  hundred 
and  twenty-four,  and  fifty-two  hundred  and  twenty-five  of  the 
Revised  Statutes  ;  and  any  gain  that  may  arise  from  the  failure 
to  present  such  circulating  notes  for  redemption  shall  inure  to 
the  benefit  of  the  United  States  ;  and  from  time  to  time,  as  such 
notes  are  redeemed  or  lawful  money  deposited  therefor  as  pro- 
vided herein,  new  circulating  notes  shall  be  issued  as  provided 
by  this  act,  bearing  such  devices,  to  be  approved  by  the  Secretary 
of  the  Treasury,  as  shall  make  them  readily  distinguishable  from 
the  circulating  notes  heretofore  issued :  Provided  however,  That 
each  banking  association  which  shall  obtain  the  benefit  of  this 


1882.]  DEPOSIT    AND   WITHDRAWAL   OF   BONDS.  221 

act  shall  reimburse  to  the  Treasury  the  cost  of  preparing  the 
plate  or  plates  for  such  new  circulating  notes  as  shall  be  issued 
to  it. 

[Sections  5222,  5224,  and  5225  of  the  Revised  Statutes  contain  m  sub- 
stance the  provisions  of  sections  42  and  43  of  the  Act  of  June  3,  1864, 
on  page  188.] 

[Section  7  provides  that  any  bank  which  does  not  avail  itself  of  the 
provisions  of  this  act  shall  be  wound  up  as  if  the  shareholders  had  voted 
to  go  into  liquidation,  that  it  shall  within  six  months  deposit  with  the 
Treasurer  of  the  United  States  lawful  money  sufficient  to  redeem  all  its 
outstanding  circulating  notes,  and  shall  thereupon  be  discharged  from  all 
liability  therefor,  and  that  the  bonds  deposited  to  secure  the  same  shall 
then  be  re-assigned  to  it.] 

SEC.  8.  That  national  banks  now  organized  or  hereafter 
organized,  having  a  capital  of  one  hundred  and  fifty  thousand 
dollars,  or  less,  shall  not  be  required  to  keep  on  deposit,  or  de- 
posit with  the  Treasurer  of  the  United  States,  United  States 
bonds  in  excess  of  one  fourth  of  their  capital  stock  as  security 
for  their  circulating  notes ;  but  such  banks  shall  keep  on  deposit, 
or  deposit  with  the  Treasurer  of  the  United  States,  the  amount 
of  bonds  as  herein  required.  And  such  of  those  banks  having 
on  deposit  bonds  in  excess  of  that  amount  are  authorized  to 
reduce  their  circulation  by  the  deposit  of  lawful  money  as  pro- 
vided by  law ;  provided,  That  the  amount  of  such  circulating 
notes  shall  not  in  any  case  exceed  ninety  per  centum  of  the  par 
value  of  the  bonds  deposited  as  herein  provided.  .  .  . 

SEC.  9.  That  any  national  banking  association  now  organ- 
ized, or  hereafter  organized,  desiring  to  withdraw  its  circulating 
notes,  upon  a  deposit  of  lawful  money  with  the  Treasurer  of  the 
United  States,  as  provided  in  section  four  of  the  act  of  June 
twentieth,  eighteen  hundred  and  seventy -four,  entitled  "  An  act 
fixing  the  amount  of  United  States  notes,  providing  for  a  re- 
distribution of  national-bank  currency,  and  for  other  purposes," 
or  as  provided  in  this  act,  is  authorized  to  deposit  lawful  money 
and  withdraw  a  proportionate  amount  of  the  bonds  held  as  se- 
curity for  its  circulating  notes  in  the  order  of  such  deposits ;  and 
no  national  bank  which  makes  any  deposit  of  lawful  money  in 
order  to  withdraw  its  circulating  notes  shall  be  entitled  to  receive 


222  LIMIT   OF   CIRCULATING   NOTES.  [1882. 

any  increase  of  its  circulation  for  the  period  of  six  months  from 
the  time  it  made  such  deposit  of  lawful  money  for  the  purpose 
aforesaid :  Provided,  That  not  more  than  three  millions  of  dollars 
of  lawful  money  shall  be  deposited  during  any  calendar  month 
for  this  purpose :  And  provided  further,  That  the  provisions 
of  this  section  shall  not  apply  to  bonds  called  for  redemption 
by  the  Secretary  of  the  Treasury,  nor  to  the  withdrawal  of 
circulating  notes  in  consequence  thereof. 

SEC.  10.  That  upon  a  deposit  of  bonds  as  described  by  sec- 
tions fifty-one  hundred  and  fifty-nine  and  fifty-one  hundred  and 
sixty,  except  as  modified  by  section  four  of  an  act  entitled  "  An 
act  fixing  the  amount  of  United  States  notes,  providing  for  a 
redistribution  of  the  national-bank  currency,  and  for  other  pur- 
poses," approved  June  twentieth,  eighteen  hundred  and  seventy- 
four,  and  as  modified  by  section  eight,  of  this  act,  the  association 
making  the  same  shall  be  entitled  to  receive  from  the  Comp- 
troller of  the  Currency  circulating  notes  of  different  denomina- 
tions, in  blank,  registered  and  countersigned  as  provided  by  law, 
equal  in  amount  to  ninety  per  centum  of  the  current  market 
value,  not  exceeding  par,  of  the  United  States  bonds  so  trans- 
ferred and  delivered,  and  at  no  time  shall  the  total  amount  of 
such  notes  issued  to  any  such  association  exceed  ninety  per  cen- 
tum of  the  amount  at  such  time  actually  paid  in  of  its  capital 
stock;  and  the  provisions  of  sections  fifty-one  hundred  and 
seventy-one  and  fifty-one  hundred  and  seventy-six  of  the  Re- 
vised Statutes  are  hereby  repealed. 

[Sections  5159  and  5160  of  tlie  Revised  Statutes  correspond  to  section  16 
of  the  Bank  Act  of  1864,  on  page  180,  and  sections  5171  and  5176  state  the 
limit  of  circulating  notes  to  be  allowed  to  each  bank,  as  given  on  pages 
199  and  203.] 

SEC.  11.  That  the  Secretary  of  the  Treasury  is  hereby 
authorized  to  receive  at  the  Treasury  any  bonds  of  the  United 
States  bearing  three  and  a  half  per  centum  interest,  and  to  issue 
in  exchange  therefor  an  equal  amount  of  registered  bonds  of  the 
United  States  of  the  denominations  of  fifty,  one  hundred,  five 
hundred,  one  thousand,  and  ten  thousand  dollars,  of  such  form 
as  he  may  prescribe,  bearing  interest  at  the  rate  of  three  per 


1882.]  THREE  PER  CENT.  BONDS.   GOLD  CERTIFICATES.    223 

centum  per  annum,  payable  quarterly  at  the  Treasury  of  the 
United  States.  Such  bonds  shall  be  exempt  from  all  taxation 
by  or  under  State  authority,  and  be  payable  at  the  pleasure  of 
the  United  States :  Provided,  That  the  bonds  herein  authorized 
shall  not  be  called  in  and  paid  so  long  as  any  bonds  of  the  United 
States  heretofore  issued  bearing  a  higher  rate  of  interest  than 
three  per  centum,  and  which  shall  be  redeemable  at  the  pleasure 
of  the  United  States,  shall  be  outstanding  and  uncalled.  The 
last  of  the  said  bonds  originally  issued  under  this  act,  and  their 
substitutes,  shall  be  first  called  in,  and  this  order  of  payment 
shall  be  followed  until  all  shall  have  been  paid. 

SEC.  12.  That  the  Secretary  of  the  Treasury  is  authorized 
and  directed  to  receive  deposits  of  gold  coin  with  the  Treasurer 
or  assistant  treasurers  of  the  United  States,  in  sums  not  less 
than  twenty  dollars,  and  to  issue  certificates  therefor  in  denom- 
inations of  not  less  than  twenty  dollars  each,  corresponding  with 
the  denominations  of  United  States  notes.  The  coin  deposited 
for  or  representing,  the  certificates  of  deposits  shall  be  retained 
in  the  Treasury  for  the  payment  of  the  same  on  demand.  Said 
certificates  shall  be  receivable  for  customs,  taxes,  and  all  public 
dues,  and  when  so  received  may  be  reissued ;  and  such  certifi- 
cates, as  also  silver  certificates,  when  held  by  any  national 
banking  association,  shall  be  counted  as  part  of  its  lawful 
reserve ;  and  no  national  banking  association  shall  be  a  mem- 
ber of  any  clearing-house  in  which  such  certificates  shall  not 
be  receivable  in  the  settlement  of  clearing-house  balances : 
Provided,  That  the  Secretary  of  the  Treasury  shall  suspend  the 
issue  of  such  gold  certificates  whenever  the  amount  of  gold  coin 
and  gold  bullion  in  the  Treasury,  reserved  for  the  redemption  of 
United  States  notes  falls  below  one  hundred  millions  of  dollars  ; 
and  the  provisions  of  section  fifty-two  hundred  and  seven  of  the 
Eevised  Statutes  shall  be  applicable  to  the  certificates  herein 
authorized  and  directed  to  be  issued. 

SEC.  14.   That  Congress  may  at  any  time  amend,  alter,  or 
repeal  this  act  and  the  acts  of  which  this  is  amendatory. 

[Approved,  July  12,  1882.    22  Statutes  at  Large,  162.] 

[Section  5207  of  the  Revised  Statutes  is  the  Act  of  February  19, 1869, 
on  page  201.] 


224  TAXES   ON   BANKS    REDUCED.  [1887. 

1882-83,  Chap.  CXXI.  —  An  act  to  reduce  internal-revenue 

taxation,  and  for  other  purposes. 

Be  it  enacted,  .  .  .  That  the  taxes  herein  specified  im- 
posed by  the  laws  now  in  force  be,  and  the  same  are  hereby, 
repealed,  as  hereinafter  provided,  namely :  On  capital  and 
deposits  of  banks,  bankers,  and  national  banking  associations, 
except  such  taxes  as  are  now  due  and  payable ;  and  on  and 
after  the  first  day  of  July,  eighteen  hundred  and  eighty-three, 
the  stamp  tax  on  bank  checks,  drafts,  orders,  and  vouchers,  .  .  . 
[Approved,  March  3,  1883.  22  Statutes  at  Large,  488.] 

1885-86,  Chap.  LXXIII.  —  An  Act  to  enable  national  bank- 
ing associations  to  increase  their  capital  stock  and  to 
change  their  names  or  locations. 

[This  act  authorizes  any  national  bank,  with  the  approval  of  the  Comp- 
troller of  the  Currenej'  and  by  the  vo'te  of  shareholders  owning  two  thirds 
of  its  stock,  to  increase  its  capital  to  any  sum  approved  by  the  Comptroller, 
to  change  its  name,  or  to  change  .its  place  of  business  to  any  other  within 
the  same  State  and  not  more  than  thirty  miles  distant.  All  liabilities, 
rights,  and  powers  of  the  bank  under  its  old  name  devolve  upon  and  inure 
to  it  under  the  new  name,  and  it  is  not  released  from  any  liability,  nor 
shall  any  proceeding  at  law  to  which  it  is  a  party  be  affected,  by  change 
of  location  under  this  act.] 

[Approved,  May  1,  1886.     24  Statutes  at  Large,  18.] 

1885-86,  Chap.  DCCCXVIII.  —  An  act  to  prohibit  the  pas- 
sage of  local  or  special  laws  in,  the  Territories  of  the 
United  States,  to  limit  Territorial  indebtedness,  and  for 
other  purposes. 

[Section  5  amends  section  1889  of  the  Revised  Statutes,  so  as  to  allow 
any  Territory  by  general  act  to  incorporate  "  banks  of  discount  and  de- 
posit (but  not  of  issue)."] 

[Approved,  July  30,  1886.     24  Statutes  at  Large,  170.] 

1886-87,  Chap.   CCCLXXVIII.  —  An  act  to  amend  sections 

Jive   thousand  one  hundred  and  ninety-one  and  Jive 

thousand  one  hundred  and  ninety-two  of  the  Revised 

/Statutes  of  the  United  States,  and  for  other  purposes. 

Be  it  enacted  .  .  .  That  whenever  three-fourths  in  number 
of  the  national  banks  located  in  any  city  of  the  United  States 


1887.]  RESERVE   AND    CENTRAL   RESERVE   CITIES.  225 

having  a  population  of  fifty  thousand  people  shall  make  appli- 
cation to  the  Comptroller  of  the  Currency,  in  writing,  asking 
that  the  name  of  the  city  in  which  such  banks  are  located  shall 
be  added  to  the  cities  named  in  sections,  fifty-one  hundred  and 
ninety-one  and  fifty-one  hundred  and  ninety-two  of  the  Revised 
Statutes,  the  Comptroller  shall  have  authority  to  grant  such 
request,  and  eveiy  bank  located  in  such  city  shall  at  all  times 
thereafter  have  on  hand,  in  lawful  money  of  the  United  States, 
an  amount  equal  to  at  least  twent3'-fivc  per  centum  of  its  de- 
posits, as  provided  in  sections  fifty-one  hundred  and  ninety- 
one  and  fifty-one  hundred  and  ninet3'-five  of  the  Revised 
Statutes. 

SEC.  2.  That  whenever  three-fourths  in  number  of  the 
national  banks  located  in  any  city  of  the  United  States  hav- 
ing a  population  of  two  hundred  thousand  people  shall  make 
application  to  the  Comptroller  of  the  Currency,  in  writing, 
asking  that  such  cit}"  may  be  a  central'  reserve  cit3',  like  the 
city  of  New  York,  in  which  one-half  of  the  lawful-money  re- 
serve of  the  national  banks  located  in  other  reserve  cities  may 
be  deposited,  as  provided  in  section  fifty-one  hundred  and 
ninety-five  of  the  Revised  Statutes,  the  Comptroller  shall  have 
authority,  with  the  approval  of  the  Secretary  of  the  Treasur}', 
to  grant  such  request,  and  every  bank  located  in  such  city 
shall  at  all  times  thereafter  have  on  hand,  in  lawful  money  of 
the  United  States,  twent3'-five  per  centum  of  its  deposits,  as 
provided  in  section  fifty-one  hundred  and  ninety-one  of  the 
Revised  Statutes. 

SEC.  3.  That  section  three  of  the  act  of  January  fourteenth, 
eighteen  hundred  and  severe-five,  entitled  "An  act  to  pro- 
vide for  the  resumption  of  specie  payments,  be,  and  the  same 
is,  hereb}'  amended  by  adding  after  the  words  " New  York" 
the  words  "  and  the  city  of  San  Francisco,  California." 

[Approved,  March  3,  1887.    24  Statutes  at  Large,  559.] 

[Sections  5191  and  5192  of  the  Revised  Statutes  correspond  to  section  31 
of  the  Bank  Act  of  June  3, 1864,  on  page  184,  and  section  5195  corresponds 
to  section  32  of  the  same  Act.] 

15 


226  TREASURY  NOTES   FOR   SILVER   BULLION.  [1890. 

1889-90,  Chap.  DCCVIII.  —  An  act  directing  the  purchase  of 
silver  bullion  and  the  issue  of  Treasury  notes  thereon, 
and  for  other  purposes. 

[Sections  1  and  2  of  this  act  authorize  the  issue  of  Treasury  notes  in 
payment  for  silver  bullion,  the  notes  to  be  redeemable  in  coin,  to  be  a 
legal  tender  for  all  debts,  receivable  for  customs  and  public  dues,  and  to 
be  counted  by  banks  as  a  part  of  their  lawful  reserve ;  and  section  6  pro- 
vides for  covering  into  the  Treasury  all  moneys  held  for  the  redemption 
of  bank  notes,  except  the  five  per  cent,  redemption  fund  required  by  the 
act  of  June  20,  1874,  on  page  210.  The  act  is  given  in  full  below,  on 
page  250.] 

[Approved,  July  14,  1880.    26  Statutes  at  Large,  289.] 


PART    III. 


COINS   AND  COINAGE. 

1789-1890. 


1789,  Chap.  V. — An  Act  to  regulate  the  Collection  of  the 
Duties  imposed  by  law  on  the  tonnage  of  ships  or  ves- 
sels, and  on  goods,  wares,  and  merchandises  imported 
into  the  United  States. 

[Section  30  of  this  act,  fixing  the  rates  at  which  foreign  coins  shall  be 
received  in  payment  of  duties  and  fees  under  this  act,  is  printed  above,  on 
page  7. 

The  same  rates  are  repeated  in  section  56  of  the  revised  collection  act 
of  August  4,  1790,  1  Statutes  at  Large,  173.] 

[Approved,  July  31,  1789.     1  Statutes  at  Large,  45.] 

1791-92,   Chap.  XVI.  —  An  Act  establishing  tf  Mint,  and 
regulating  the  Coins  of  the  United  States. 

SEC.  9.  And  be  it  further  enacted,  That  there  shall  be 
from  time  to  time  struck  and  coined  at  the  said  mint,  coins 
of  gold,  silver,  and  copper,  of  the  following  denominations, 
values  and  descriptions,  viz.  EAGLES  —  each  to  be  of  the 
value  of  ten  dollars  or  units,  and  to  contain  two  hundred 
and  forty-seven  grains  and  four-eighths  of  a  grain  of  pure,  or 
two  hundred  and  seventy  grains  of  standard  gold. 

[Half-eagles  and  quarter-eagles  of  corresponding  weights  and  fineness.] 

DOLLARS  OR  UNITS  —  Each  to  be  of  the  value  of  a  Spanish 
milled  dollar  as  the  same  is  now  current,  and  to  contain 
three  hundred  and  seventy-one  grains  and  four-sixteenth 
parts  of  a  grain  of  pure,  or  four  hundred  and  sixteen  grains 
of  standard  silver. 


228  VALUATION   OF   GOLD   AND    SILVER- ALLOY.  [1792. 

[Half-dollars,  quarter-dollars,  dimes,  and  half-dimes  of  corresponding 
weights  and  fineness,  and  cents  and  half-cents  of  copper.] 

SEC.  11.  And  be  it  further  enacted,  That  the  propor- 
tional value  of  gold  to  silver  in  all  coins  which  shall  by  law 
be  current  as  money  within  the  United  States,  shall  be  as 
fifteen  to  one,  according  to  quantity  in  weight,  of  pure  gold 
or  pure  silver ;  that  is  to  say,  eveiy  fifteen  pounds  weight  of 
pure  silver  shall  be  of  equal  value  in  all  payments,  with  one 
pound  weight  of  pure  gold,  and  so  in  proportion  as  to  any 
greater  or  less  quantities  of  the  respective  metals. 

SEC.  12.  And  be  it  further  enacted,  .  .  .  That  the  stand- 
ard for  all  gold  coins  of  the  United  States  shall  be  eleven 
parts  fine  to  one  part  alloy  ;  and  accordingly  that  eleven 
parts  in  twelve  of  the  entire  weight  of  each  of  the  said  coins 
shall  consist  of  pure  gold,  and  the  remaining  one  twelfth  part 
of  alloy ;  and  the  said  alloy  shall  be  composed  of  silver  and 
copper,  in  such  proportions  not  exceeding  one  half  silver  as 
shall  be  found  convenient ;  to  be  regulated  by  the  director 
of  the  mint,  for  the  time  being,  with  the  approbation  of  the 
President  of  the  United  States,  until  further  provision  shall 
be  made  by  law.  .  .  . 

SEC.  13.  And  be  it  further  enacted,  That  the  standard  for 
all  silver  coins  of  the  United  States,  shall  be  one  thousand 
four  hundred  and  eightj'-five  parts  fine  to  one  hundred  and 
seventy-nine  parts  alloy ;  and  accordingly  that  one  thousand 
four  hundred  and  eighty-five  parts  in  one  thousand  six  hun- 
dred and  sixty-four  parts  of  the  entire  weight  of  each  of  the 
said  coins  shall  consist  of  pure  silver,  and  the  remaining  one 
hundred  and  seventy-nine  parts  of  alloy ;  which  alloy  shall 
be  wholly  of  copper. 

SEC.  14.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  any  person  or  persons  to  bring  to  the  said  mint  gold  and 
silver  bullion,  in  order  to  their  being  coined ;  and  that  the 
bullion  so  brought  shall  be  there  assayed  and  coined  as 
speedily  as  ma}'  be  after  the  receipt  thereof,  and  that  free  of 
expense  to  the  person  or  persons  by  whom  the  same  shall 
have  been  brought.  And  as  soon  as  the  said  bullion  shall 
have  been  coined,  the  person  or  persons  by  whom  the  same 


1793.]  FREE  COINAGE:  LAWFUL  TENDER.  229 

shall  have  been  delivered,  shall  upon  demand  receive  in  lieu 
thereof  coins  of  the  same  species  of  bullion  which  shall  have 
been  so  delivered,  weight  for  weight,  of  the  pure  gold  or  pure 
silver  therein  contained  :  Provided  nevertheless,  That  it  shall 
be  at  the  mutual  option  of  the  part}r  or  parties  bringing  such 
bullion,  and  of  the  director  of  the  said  mint,  to  make  an  im- 
mediate exchange  of  coins  for  standard  bullion,  with  a  deduc- 
tion of  one-half  per  cent,  from  the  weight  of  the  pure  gold,  or 
pure  silver  contained  in  the  said  bullion,  as  an  indemnifica- 
tion to  the  mint  for  the  time  which  will  necessarily  be  required 
for  coining  the  said  bullion,  and  for  the  advance  which  shall 
have  been  so  made  in  coins.  .  .  . 

SEC.  16.  And  be  it  further  enacted,  That  alt  the  gold 
and  silver  coins  which  shall  have  been  struck  at,  and  issued 
from  the  said  mint,  shall  be  a  lawful  tender  in  all  pa3'ments 
whatsoever,  those  of  full  weight  according  to  the  respective 
values  herein  before  declared,  and  those  of  less  than  full 
weight  at  values  proportional  to  their  respective  weights. 

SEC.  20.  And  be  it  further  enacted,  That  the  money  of 
account  of  the  United  States  shall  be  expressed  in  dollars 
or  units,  dismes  or  tenths,  cents  or  hundredths,  and  milles  or 
thousandths,  a  disme  being  the  tenth  part  of  a  dollar,  a  cent 
the  hundredth  part  of  a  dollar,  a  mille  the  thousandth  part 
a  dollar,  and  that  all  accounts  in  the  public  offices  and  all 
proceedings  in  the  courts  of  the  United  States  shall  be  kept 
and  had  in  conformity  to  this  regulation. 

[Approved,  April  2,  1792.     1  Statutes  at  Large,  246.] 

1792-93,  Chap.  V. —  An  Act  regulating  foreign  Coins,  and 
for  other  purposes. 

SECTION  1.  Be  it  enacted,  ,  .  .  That  from  and  after  the 
first  day  of  July  next,  foreign  gold  and  silver  coins  shall  pass 
current  as  money  within  the  United  States,  and  be  a  legal 
tender  for  the  payment  of  all  debts  and  demands,  at  the  sev- 
eral and  respective  rates  following,  and  not  otherwise,  viz : 

[The  gold  coins  of  Great  Britain  and  Portugal  at  100  cents  for  every  27 
grains  of  weight ;  gold  coins  of  France,  Spain,  and  the  dominions  of  Spain 


230  CURRENCY   OF   FOREIGN   GOLD    AND    SILVER.         [1798. 

at  100  cents  for  every  27f  grains  ;  Spanish  milled  dollars  at  100  cents  each, 
the  weight  being  not  less  than  17  pennyweights  and  7  grains,  and  so  for 
the  parts  of  a  dollar ;  crowns  of  France  at  110  cents  each,  the  weight 
being  not  less  than  18  pennyweights  and  17  grains,  and  so  for  the  parts 
of  a  crown.  But  no  foreign  coin  issued  after  January  1,  1792,  shall  be  a 
tender  until  proclamation  by  the  President  that  it  has  been  found  by  assay 
at  the  Mint  to  be  of  the  required  standard.] 

SEC.  2.  Provided  always,  and  be  it  further  enacted,  That 
at  the  expiration  of  three  years  next  ensuing  the  time  when 
the  coinage  of  gold  and  silver,  agreeably  to  the  act,  entitled 
"An  act  establishing  a  mint,  and  regulating  the  coins  of  the 
United  States,"  shall  commence  at  the  mint  of  the  United 
States,  (which  time  shall  be  announced  by  the  proclamation 
of  the  President  of  the  United  States,)  all  foreign  gold  coins, 
and  all  foreign  silver  coins,  except  Spanish  milled  dollars  and 
parts  of  such  dollars,  shall  cease  to  be  a  legal  tender,  as 
aforesaid. 

[Section  3  provides  that,  from  the  time  when  coining  shall  begin  at  the 
Mint,  all  foreign  gold  and  silver  coins,  except  Spanish  milled  dollars  and 
parts  thereof,  received  by  the  United  States,  shall  be  recomed  at  the  Mint. 

Section  4  repeals  from  July  1,  1793,  section  56  of  the  collection  act  of 
1790,  fixing  the  rates  at  which  foreign  coins  shall  be  received  for  duties. 
See  above,  page  227.] 

[Approved,  February  9,  1793.    1  Statutes  at  Large,  300.] 

NOTE.  —  The  proclamation  required  by  section  2  of  the  above  act  was 
issued  July  22,  1797.  See  11  Statutes  at  Large,  755. 

The  collection  act  of  March  2, 1799,  provides  for  the  collection  of  all  du- 
ties and  fees  in  money  of  the  United  States  or  in  foreign  coins  at  the  rates 
prescribed  by  section  1  above ;  and  also  provides  that  no  foreign  coins 
which  are  not  by  law  a  tender  for  debts  shall  be  received,  except  under  a 
proclamation  of  the  President  authorizing  the  same.  1  Statutes  at  Large, 
680. 

1797-98,  Chap.  XI.  —  An  Act  supplementary  to  the  act  inti- 
tuled "An  Act  regulating  foreign  Coins,  and  for  other 
purposes." 

Be  it  enacted,  .  .  .  That  the  second  section  of  an  act,  inti- 
tuled "  An  act  regulating  foreign  coins,  and  for  other  purposes," 
be,  and  the  same  is  hereby  suspended,  for  and  during  the 
space  of  three  years  from  and  after  the  first  day  of  January, 


1816.]         CURRENCY   OF    FOREIGN    GOLD   AND    SILVER.  231 

one  thousand  seven  hundred  and  ninety-eight,  and  until  the 
end  of  the  next  session  of  Congress  thereafter,  during  which 
time  the  said  gold  and  silver  coins  shall  be  and  continue  a 
legal  tender,  as  is  provided  in  and  by  the  first  section  of  the 
act  aforesaid  ;  and  that  the  same  coins  shall  thereafter  cease 
to  be  such  tender. 

[Approved,  February  1,  1798.    1  Statutes  at  Large,  539.] 

NOTE.  —  By  the  Act  of  April  30,  1802,  this  suspension  is  continued  for 
three  years  from  the  end  of  the  present  session  of  Congress.  2  Statutes 
at  Large,  173. 

1805-06,  Chap.  XXII.  —  An  Act  regulating  the  currency  of 
foreign  coins  in  the  United  States. 

[Section  1  provides  that  foreign  gold  and  silver  coin  shall  pass  current 
as  money  and  be  a  legal  tender  for  debt,  specifying  the  same  coins  as  are 
named  in  section  1  of  the  Act  of  February  9,  1793,  and  fixing  the  same 
rates.  It  is  also  required  that  assays  shall  be  made,  at  least  annually,  of 
the  coins  thus  made  current  and  of  similar  coins  subsequently  issued,  in 
order  that  Congress  may  determine  the  real  value  at  which  such  coins 
should  be  current. 

Section  2  repeals  section  1  of  the  act  of  February  9, 1793,  and  suspends 
the  operation  of  section  2  of  the  same  act  for  three  years.] 

[Approved,  April  10,  1806.    2  Statutes  at  Large,  374.] 

1815-16,  Chap.  CXXXIX.  —  An  Act  regulating  the  currency 
within  the  United  States,  of  the  gold  coins  of  Great 
Britain,  France,  Portugal  and  Spain,  and  the  crowns 
of  France,  and  five- franc  pieces. 

Be  it  enacted,  .  .  .  That  from  the  passage  of  this  act  and 
for  three  }-ears  thereafter,  and  no  longer,  the  following  gold 
and  silver  coins  shall  pass  current  as  money  within  the  United 
States,  and  be  a  legal  tender  for  the  payment  of  all  debts  and 
demands,  at  the  several  and  respective  rates  following,  and  not 
otherwise,  videlicet :  the  gold  coins  of  Great  Britain  and  Por- 
tugal, of  their  present  standard,  at  the  rate  of  one  hundred 
cents  for  every  seventy  [twentyj-seven  grains,  or  eighty-eight 
cents  and  eight-ninths  per  pennyweight ;  the  gold  coins  of 
France,  of  their  present  standard,  at  the  rate  of  one  hundred 


232  CURRENCY   OF    FOREIGN    GOLD    AND    SILVER.          [1828. 

cents  for  ever}*  twenty-seven  and  a  half  grains,  or  eighty-seven 
and  a  quarter  cents  per  pennyweight ;  the  gold  coins  of  Spain, 
at  the  rate  of  one  hundred  cents  for  every  twent}--eight  and  a 
half  grains,  or  eighty-four  cents  per  pennj'weight ;  the  crowns 
of  France,  at  the  rate  of  one  hundred  and  seventeen  cents  and 
six-tenths  per  ounce,  or  one  hundred  and  ten  cents  for  each 
crown  weighing  eighteen  pennyweights  and  seventeen  grains  ; 
the  five-franc  pieces  at  the  rate  of  one  hundred  and  sixteen 
cents  per  ounce,  or  ninety-three  cents  and  three  mills  for 
each  five- franc  piece,  weighing  sixteen  pennyweights  and  two 
grains. 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Secretary  of  the  Treasury  to  cause  assays  of  the 
foregoing  gold  and  silver  coins,  made  current  by  this  act, 
to  be  had  at  the  mint  of  the  United  States,  at  least  once  in 
every  j*ear:  and  to  make  report  of  the  result  thereof  to 

Congress. 

[Approved,  April  29,  1816.     3  Statutes  at  Large,  322.] 

NOTE.  —  By  the  Act  approved  March  3,  1819,  so  much  of  the  above 
Act  as  relates  to  foreign  gold  coins  was  continued  in  force  until  November 
J,  1819,  and  so  much  as  relates  to  foreign  silver  coins  until  April  20,  1821. 
See  3  Statutes  at  Large,  525.  And  by  acts  approved  March  3,  1821,  and 
March  3,  1823,  the  provisions  relating  to  foreign  silver  coins  were  further 
continued  in  force  until  March  4,  1827.  See  ibid.,  645,  777. 

1822-23,  Chap.  LIII. — An  Act  making  the  gold  coins  of 
Great  Britain,  France,  Portugal  and  Spain,  receivable 
inpayments  on  account  of  public  lands. 

[Section  1  makes  the  gold  coins  of  Great  Britain,  France,  Portugal 
and  Spain,  of  their  present  standard,  receivable  in  all  payments  on 
account  of  public  lands,  at  rates  identical  with  those  specified  in  the  Act 
of  April  2!),  1816 ;  and  section  2  makes  it  the  duty  of  the  Secretary  of 
the  Treasury  to  cause  assays  of  the  said  coins  to  be  made  at  least  once 
in  every  year,  and  to  report  the  results  to  Congress.] 

[Approved,  March  3,  1823.    3  Statutes  at  Large,  779.] 

1827-28,  Chap.  LXVII.  —  An  Act  to  continue  the  mint  at 
the  city  of  Philadelphia,  and  for  other  purposes. 

SEC.  2.  And  be  it  further  enacted,  That,  for  the  purpose 
of  securing  a  due  conformity  in  weight  of  the  coins  of  the 


1834.]         STANDARD    POUND  :    FOREIGN    SILVER   COIN.  233 

United  States,  to  the  provisions  of  the  ninth  section  of  the 
act,  passed  the  second  of  April,  one  thousand  seven  hun- 
dred and  ninet}--two,  entitled  "An  act  establishing  a  mint, 
and  regulating  the  coins  of  the  United  States,"  the  brass 
troy  pound  weight  procured  by  the  minister  of  the  United 
States  at  London,  in  the  year  one  thousand  eight  hundred 
and  twenty-seven,  for  the  use  of  the  mint,  and  now  in  the 
custody  of  the  director  thereof,  shall  be  the  standard  troy 
pound  of  the  mint  of  the  United  States,  conformably  to 
which  the  coinage  thereof  shall  be  regulated. 

[Approved,  May  19,  1828.    4  Statutes  at  Large,  277.] 

1833-34,  Chap.  LXXI.  —  An  Act  regulating  the  value  of  cer- 
tain foreign  silver  coins  within  the  United  States. 

•  Be  it  enacted,  .  .  .  That  from  and  after  the  passage  of 
this  act,  the  following  silver  coins  shall  be  of  the  legal  value, 
and  shall  pass  current  as  money  within  the  United  States, 
by  tale,  for  the  payment  of  all  debts  and  demands,  at  the 
rate  of  one  hundred  cents  the  dollar,  that  is  to  say,  the  dol- 
lars of  Mexico,  Peru,  Chili,  and  Central  America,  of  not  less 
weight  than  four  hundred  and  fifteen  grains  each,  and  those 
re- stamped  in  Brazil  of  the  like  weight,  of  not  less  fineness 
than  ten  ounces  fifteen  pennyweights  of  pure  silver,  in  the 
troy  pound  of  twelve  ounces  of  standard  silver :  and  the  five 
franc  pieces  of  France,  when  of  not  less  fineness  than  ten 
ounces  and  sixteen  pennyweights  in  twelve  ounces  troy 
weight  of  standard  silver,  and  weighing  not  less  than  three 
hundred  and  eighty-four  grains  each  at  the  rate  of  ninety-- 
three cents  each. 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  [the] 
dut}r  of  the  Secretary  of  the  Treasmy  to  cause  assays  of  the 
aforesaid  silver  coins,  made  current  by  this  act,  to  be  had  at 
the  mint  of  the  United  States  at  least  once  in  every  year, 
and  to  make  report  of  the  result  thereof  to  Congress. 

[Approved,  June  25,  1834.    4  Statutes  at  Large,  681.] 


234  WEIGHT   OF    GOLD    COIN   REDUCED.  [1834. 

1833-34,  Chap.  XCV.  —  An  Act  concerning  the  gold  coins 
of  the  United  States,  and  for  other  purposes. 

J3e  it  enacted,  .  .  .  That  the  gold  coins  of  the  United 
States  shall  contain  the  following  quantities  of  metal,  that  is 
to  say :  each  eagle  shall  contain  two  hundred  and  thirty-two 
grains  of  pure  gold,  and  two  hundred  and  fifty-eight  grains 
of  standard  gold ;  each  half  eagle  one  hundred  and  sixteen 
grains  of  pure  gold,  and  one  hundred  and  twenty-nine  grains 
of  standard  gold  ;  each  quarter  eagle  shall  contain  fifty-eight 
grains  of  pure  gold,  and  sixty-four  and  a  half  grains  of  stand- 
ard gold ;  every  such  eagle  shall  be  of  the  value  of  ten  dol- 
lars ;  every  such  half  eagle  shall  be  of  the  value  of  five  dollars  ; 
and  every  such  quarter  eagle  shall  be  of  the  value  of  two  dol- 
lars and  fifty  cents  ;  and  the  said  gold  coins  shall  be  receivable 
in  all  payments,  when  of  full  weight,  according  to  their  respec- 
tive values  ;  and  when  of  less  than  full  weight,  at  less  values, 
proportioned  to  their  respective  actual  weights. 

SEC.  2.  And  be  it  further  enacted,  That  all  standard  gold 
or  silver  deposited  for  coinage  after  the  thirty-first  of  July 
next,  shall  be  paid  for  \n  coin  under  the  direction  of  the 
Secretary  of  the  Treasury,  within  five  days  from  the  making 
of  such  deposit,  deducting  from  the  amount  of  said  deposit 
of  gold  and  silver  one-half  of  one  per  centum  :  Provided, 
That  no  deduction  shall  be  made  unless  said  advance  be 
required  by  such  depositor  within  forty  da3*s. 

SEC.  3.  And  be  it  farther  enacted,  That  all  gold  coins  of 
the  United  States,  minted  anterior  to  the  thirty-first  da}' 
of  July  next,  shall  be  receivable  in  all  payments  at  the  rate 
of  ninety-four  and  eight-tenths  of  a  cent  per  pennyweight. 

[Approved,  June  28,  1834.    4  Statutes  at  Large,  699.] 

1833-34,  Chap.  XCVI.  —  An  Act  regulating  the  value  of  cer- 
tain foreign  gold  coins  wit/tin  the  United  States. 

Be  it  enacted,  .  .  .  That,  from  and  after  the  thirty-first 
day  of  July  next,  the  following  gold  coins  shall  pass  as  cur- 
rent as  money  within  the  United  States,  and  be  receivable 
in  all  payments,  by  weight,  for  the  payment  of  all  debts 


1837.]  ALLOY:  STANDARD  WEIGHT  OF  COINS.  235 

and  demands,  at  the  rates  following,  that  is  to  say :  the  gold 
coins  of  Great  Britain,  Portugal,  and  Brazil,  of  not  less  than 
twenty-two  carats  fine,  at  the  rate  of  ninety-four  cents  and 
eight- tenths  of  a  cent  per  pennyweight ;  the  gold  coins  of 
France  nine-tenths  fine,  at  the  rate  of  ninety-three  cents  and 
one-tenth  of  a  cent  per  pennyweight ;  and  the  gold  coins  of 
Spain,  Mexico,  and  Colombia,  of  the  fineness  of  twenty 
carats  three  grains  and  seven-sixteenths  of  a  grain,  at  the 
rate  of  eight3'-nine  cents  and  nine-tenths  of  a  cent  per 
pennyweight. 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  the 
duty  of  the  Secretary  of  .the  Treasury  to  cause  assaj's  of 
the  aforesaid  gold  coins,  made  current  by  this  act,  to  be 
had  at  the  mint  of  the  United  States,  at  least  once  in 
every  }'ear,  and  to  make  a  report  of  the  result  thereof  to 
Congress. 

[Approved,  June  28,  1834.    4  Statutes  at  Large,  700.] 


1836-37,  Chap.  III.  —  An  Act  supplementary  to  the  act  en- 
titled "An  act  establishing  a  mint,  and  regulating  the 
coins  of  the  United  States" 

SEC.  8.  And  be  it  further  enacted,  That  the  standard  for 
both  gold  and  silver  coins  of  the  United  States  shall  hereafter 
be  such,  that  of  one  thousand  parts  by  weight,  nine  hundred 
shall  be  of  pure  metal,  and  one  hundred  of  alloy ;  and  the 
alloy  of  the  silver  coins  shall  be  of  copper  ;  and  the  alloy  of 
the  gold  coins  shall  be  of  copper  and  silver,  provided  that  the 
silver  do  not  exceed  one-half  of  the  whole  alloy. 

SEC.  9.  And  be  it  further  enacted,  That  of  the  silver  coins, 
the  dollar  shall  be  of  the  weight  of  four  hundred  and  twelve 
and  one-half  grains  ;  the  half  dollar  of  the  weight  of  two  hun- 
dred and  six  and  one-fourth  grains  ;  the  quarter  dollar  of  the 
weight  of  one  hundred  and  three  and  one-eighth  grains  ;  the 
dime,  or  tenth  part  of  a  dollar,  of  the  weight  of  forty-one  and 
a  quarter  grains ;  and  the  half  dime,  or  twentieth  part  of  a 
dollar,  of  the  weight  of  twenty  grains,  and  five-eighths  of  a 
grain.  And  that  dollars,  half  dollars,  and  quarter  dollars, 


236  GOLD    COINS   AND    LEGAL   TENDER.  [1843. 

dimes,  and  half  dimes,  shall  be  legal  tenders  of  paj-ment, 
according  to  their  nominal  value,  for  any  sums  whatever. 

SEC.  10.  And  be  it  further  enacted,  That  of  the  gold  coins, 
the  weight  of  the  eagle  shall  be  two  hundred  and  fifty -eight 
grains  ;  that  of  the  half  eagle  one  hundred  and  twenty-nine 
grains ;  and  that  of  the  quarter  eagle  sixty-four  and  one- 
half  grains.  And  that  for  all  sums  whatever,  the  eagle  shall 
be  a  legal  tender  of  payment  for  ten  dollars ;  the  half  eagle 
.  for  five  dollars ;  and  the  quarter  eagle  for  two  and  a  half 
dollars. 

SEC.  11.  And  be  it  further  enacted,  That  the  silver  coins 
heretofore  issued  at  the  mint  of  the  United  States,  and  the 
gold  coins  issued  since  the  thirty-first  day  of  July,  one  thou: 
sand  eight  hundred  and  thirty-four,  shall  continue  to  be  legal 
tenders  of  payment  for  their  nominal  values,  on  the  same 
terms  as  if  the}'  were  of  the  coinage  provided  for  by  this  act. 

[Sections  14-19  provide  that  gold  and  silver  bullion  brought  to  the 
Mint  shall  be  received  and  coined  for  the  benefit  of  the  depositor,  and 
that  the  only  subjects  of  charge  to  him  shall  be  for  refining,  toughening, 
and  separating,  and  for  metal  used  for  alloy,  the  rate  of  charge  being 
fixed  from  time  to  time  so  as  not  to  exceed  the  actual  expense  incurred. 
For  the  net  amount  of  the  deposit  a  certificate  shall  be  given,  payable  in 
coins  of  the  same  metal  as  the  deposit.  Sections  80  and  31  require  that 
when  the  coins  which  are  the  equivalent  to  any  deposit  of  bullion  are 
ready  for  delivery  they  shall  be  paid  over,  payment  being  made  to  de- 
positors in  the  order  of  priority  of  deposit.  And  to  enable  the  Mint  to 
make  returns  to  depositors  with  as  little  delay  as  possible,  it  is  made  the 
duty  of  the  Secretarj'  of  the  Treasury  to  keep  in  the  Mint,  when  practi- 
cable, a  deposit  not  exceeding  one  million  dollars,  out  of  which  the  value 
of  bullion  brought  to  the  Mint  may  be  paid  as  soon  as  ascertained;  but 
no  discount  or  interest  is  to  be  charged  on  moneys  so  advanced.] 

[Approved,  January  18,  1837.     5  Statutes  at  Large,  136.] 

1842-43,  Chap.  LXIX.  —  An  Act  regulating  the  currency  of 
foreign  gold  and  silver  coins  in  the  United  States. 

JBe  it  enacted,  .  .  .That  from  and  after  the  passage  of  this 
act,  the  following  foreign  gold  coins  shall  pass  current  as 
money  within  the  United  States,  and  be  receivable,  by  weight, 
for  the  payment  of  all  debts  and  demands,  at  the  rates  fol- 
lowing, that  is  to  say :  the  gold  coins  of  Great  Britain,  of  not 


1850.]  FOREIGN   GOLD    AND   SILVER   COINS.  237 

less  than  nine  hundred  and  fifteen  and  a  half  thousandths  in 
fineness,  at  ninety-four  eents  and  six-tenths  of  a  cent  per 
pennyweight ;  and  the  gold  coins  of  France,  of  not  less  than 
eight  hundred  and  ninety-nine  thousandths  in  fineness,  at 
ninety-two  cents  and  nine-tenths  of  a  cent  per  pennyweight. 

SEC.  2.  And  be  it  further  enacted,  That  from  and  after  the 
passage  of  this  act,  the  following  foreign  silver  coins  shall 
pass  current  as  money  within  the  United  States,  and  be  re- 
ceivable by  tale,  for  the  payment  of  all  debts  and  demands, 
at  the  rates  following,  that  is  to  say :  the  Spanish  pillar  dol- 
lars, and  the  dollars  of  Mexico,  Peru,  and  Bolivia,  of  not  less 
than  eight  hundred  and  ninety-seven  thousandths  in  fineness, 
and  four  hundred  and  fifteen  grains  in  weight,  at  one  hundred 
cents  each ;  and  the  five  franc  pieces  of  France,  of  not  less 
than  nine  hundred  thousandths  in  fineness,  and  three  hundred 
and  eight3'-four  grains  in  weight,  at  ninety-three  cents  each. 

SEC.  3.  And  be  it  further  enacted,  That  it  shall  be  the  duty 
of  the  Secretary  of  the  Treasury  to  cause  assays  of  the  coins 
made  current  by  this  act  to  be  had  at  the  mint  of  the  United 
States,  at  least  once  in  every  year,  and  to  make  report  of  the 
result  thereof  to  Congress. 

[Approved,  Marcli  3,  1843.     5  Statutes  at  Large,  607.] 

1848-49,  Chap.  CIX.  —  An  Act  to  authorize  the  Coinage  of 
Gold  Dollars  and  Double  Eagles. 

[Tliis  act  authorizes  the  coinage  of  gold  dollars  and  double  eagles 
" conformably  in  all  respects  to  the  standard  for  gold  coins  now  estab- 
lished by  law,"  and  to  be  a  legal  tender  in  payment  for  all  sums.] 

[Approved,  March  3,  1849.     9  Statutes  at  Large,  397.] 


1849-50,  Chap.  XII.  —  An  Act  supplementary  to  the  Act 
entitled  '•'An  Act  supplementary  to  the  Act  entitled 
'  An  Act  establishing  a  Mint,  and  regulating  the  Coins 
of  the  United  States.'" 

J3e  it  enacted,  .  .  .  That,  for  the  purpose  of  enabling  the 
mint  and  branch  mints  of  the  United  States  to  make  returns  to 
depositors  with  as  little  delay  as  possible,  it  shall  be  lawful 


238  WEIGHT   OF   SUBSIDIARY   COINS.  [1853. 

for  the  President  of  the  United  States,  when  the  state  of  the 
treasury  shall  admit  thereof,  to  direct  transfers  to  be  made 
from  time  to  time  to  the  mint  and  branch  mints  for  such  sums 
of  public  money  as  he  shall  judge  convenient  and  necessary, 
out  of  which  those  who  bring  bullion  to  the  mint  may  be  paid 
the  value  thereof,  as  soon  as  practicable  after  this  value  has 
been  ascertained ;  that  the  bullion  so  deposited  shall  become 
the  property  of  the  United  States  ;  that  no  discount  or  inter- 
est shall  be  charged  on  monej'  so  advanced ;  arid  that  the 
Secretary  of  the  Treasury  may  at  any  time  withdraw  the  said 
deposite,  or  any  part  thereof,  or  ma}',  at  his  discretion,  allow 
the  coins  formed  at  the  mint  to  be  given  for  their  equivalent 
in  other  money.  .  .  . 

[Approved,  May  23,  1850.    9  Statutes  at  Large,  436.] 

1852-3,  Chap.  LXXIX.  —  An  Act  amendatory  of  Existing 
Laws  relative  to  the  Half  Dollar,  Quarter  Dollar, 
Dime,  and  Half  Dime. 

Be  it  enacted,  .  .  .  That  from  and  after  the  first  day  of 
June,  eighteen  hundred  and  fifty-two  [three],  the  weight  of 
the  half  dollar  or  piece  of  fifty  cents  shall  be  one  hundred  and 
ninety-two  grains,  and  the  quarter  dollar,  dime,  and  half  dime, 
shall  be,  respectively,  one  half,  one  fifth,  and  one  tenth  of  the 
weight  of  said  half  dollar. 

SEC.  2.  And  be  it  further  enacted,  That  the  silver  coins 
issued  in  conformity  with  the  above  section,  shall  be  legal 
tenders  in  payment  of  debts  for  all  sums  not  exceeding  five 
dollars. 

SEC.  3.  And  be  it  further  enacted,  That  in  order  to  pro- 
cure bullion  for  the  requisite  coinage  of  the  subdivisions  of 
the  dollar  authorized  by  this  act,  the  Treasurer  of  the  Mint 
shall,  with  the  approval  of  the  Director,  purchase  such  bullion 
with  the  bullion  fund  of  the  mint.  He  shall  charge  himself 
with  the  gain  arising  from  the  coinage  of  such  bullion  into 
coins  of  a  nominal  value  exceeding  the  intrinsic  value  thereof, 
and  shall  be  credited  with  the  difference  between  such  in- 
trinsic value  and  the  price  paid  for  said  bullion,  and  with  the 


1853.]  PROFIT   THEREOF   AND   MODE   OF   ISSUE.  239 

• 

expense  of  distributing  said  coins  as  hereinafter  provided. 
The  balances  to  his  credit,  or  the  profit  of  said  coinage,  shall 
be,  from  time  to  time,  on  a  warrant  of  the  Director  of  the 
mint,  transferred  to  the  account  of  the  Treasury  of  the  United 
States. 

SEC.  4.  And  be  it  further  enacted,  That  such  coins  shall 
be  paid  out  at  the  mint,  in  exchange  for  gold  coins  at  par,  in 
sums  not  less  than  one  hundred  dollars ;  and  it  shall  be  law- 
ful, also,  to  transmit  parcels  of  the  same  from  time  to  time  to 
the  assistant  treasurers,  depositaries,  and  other  officers  of  the 
United  States,  under  general  regulations,  proposed  by  the 
Director  of  the  Mint,  and  approved  'by  the  Secretarj'  of 
the  Treasury :  Provided,  however,  That  the  amount  coined 
into  quarter  dollars,  dimes,  and  half  dimes,  shall  be  regulated 
by  the  Secretary  of  the  Treasury. 

SEC.  5.  And  be  it  further  enacted,  That  no  deposits  for 
coinage  into  the  half  dollar,  quarter  dollar,  dime,  and  half 
dime,  shall  hereafter  be  received,  other  than  those  made  by 
the  Treasurer  of  the  Mint,  as  herein  authorized,  and  upon 
account  of  the  United  States. 

[Section  6  provides  that  when  gold  or  silver  is  deposited  for  coinage, 
there  shall  be  a  charge  to  the  depositor,  in  addition  to  the  charge  for 
refining  or  parting  the  metals,  of  one  half  of  one  per  centum,  this  provi- 
sion not  applying  to  silver  coined  into  the  subdivisions  of  the  dollar.] 

SEC.  7.  And  be  it  further  enacted,  That  from  time  to  time 
there  shall  be  struck  and  coined  at  the  Mint  of  the  United 
States,  and  the  branches  thereof,  conformably  in  all  respects 
to  law,  and  conformably  in  all  respects  to  the  standard  of 
gold  coins  now  established  by  law,  a  coin  of  gold  of  the  value 
of  three  dollars,  or  units.  .  .  . 

[Approved,  February  21,  1853.     10  Statutes  at  Large,  160 

1852-53,  Chap.  XCVII.  —  An  Act  making  Appropriations 
for  the  Civil  and  Diplomatic  Expenses  of  Government 
for  the  year  ending  the  thirtieth  of  June,  eighteen  hun- 
dred and  fifty -four. 

[Section  10  provides  for  the  establishment  of  an  Assay  Office  in  the 
city  of  New  York.] 


240  SPANISH   AND    MEXICAN    SILVER   COINS.  [1857. 

• 

SEC.  11.  And  be  it  further  enacted,  That  the  owner  or 
owners  of  any  gold  or  silver  bullion,  in  dust  or  otherwise, 
or  of  an}"  foreign  coin,  shall  be  entitled  to  deposite  the  same 
in  the  said  office,  and  the  Treasurer  thereof  shall  give  a 
receipt,  stating  the  weight  and  description  thereof,  in  the 
manner  and  under  the  regulations  that  are  or  may  be  pro- 
vided in  like  cases  or  deposits  at  the  Mint  of  the  United 
States  with  the  Treasurer  thereof.  And  such  bullion  shall, 
without  delay,  be  melted,  parted,  refined,  and  assayed,  and 
the  net  value  thereof,  and  of  all  foreign  coins  deposited  iu 
said  office,  shall  be  ascertained ;  and  the  Treasurer  shall 
thereupon  forthwith  issue  his  certificate  of  the  net  value 
thereof,  pa3'able  in  coins  of  the  same  metal  as  that  deposited, 
either  at  the  office  of  the  Assistant  Treasurer  of  the  United 
States,  in  New  York,  or  at  the  Mint  of  the  United  States,  at 
the  option  of  the  depositor,  to  be  expressed  in  the  certificate, 
which  certificates  shall  be  receivable  at  an}"  time  within  sixty 
days  from  the  date  thereof  in  payment  of  all  debts  due  to 
the  United  States  at  the  port  of  New  York  for  the  full  sum 
therein  certified.  .  .  . 

[Approved,  March  3,  1853.     10  Statutes  at  Large,  212.] 

1856-57,  Chap.  LVI.  —  An  Act  relating  to  Foreign  Coins 
and  to  the  Coinage  of  Cents  at  the  Mint  of  the  United 
States. 

2te  it  enacted,  .  .  .  That  the  pieces  commonly  known  as 
the  quarter,  eighth,  and  sixteenth  of  the  Spanish  pillar  dollar, 
and  of  the  Mexican  dollar,  shall  be  receivable  at  the  treasury 
of  the  United  States,  and  its  several  offices,  and  at  the  sev- 
eral post-offices  and  land-offices,  at  the  rates  of  valuation  fol- 
lowing,—  that  is  to  say,  the  fourth  of  a  dollar,  or  piece  of 
two  reals,  at  twent}-  cents ;  the  eighth  of  a  dollar,  or  piece 
of  one  real,  at  ten  cents ;  and  the  sixteenth  of  a  dollar,  or 
half  real,  at  five  cents. 

[Section  2  provides  that  the  said  coins,  when  so  received,  shall  not  be 
paid  out  again,  but  shall  be  recoined  at  the  Mint,  and  that  the  expenses 
of  transmission  and  recoinage  "  shall  be  charged  against  the  account  of 
silver  profit  and  loss."] 


1873.]  COINAGE   ACTS  REVISED.  241 

SEC.  3.  And  be  it  further  enacted,  That  all  former  acts 
authorizing  the  currency  of  foreign  gold  or  silver  coins,  and 
declaring  the  same  a  legal  tender  in  payment  for  debts,  are 
hereby  repealed ;  but  it  shall  be  the  duty  of  the  director 
of  the  mint  to  cause  assays  to  be  made,  from  time  to  time, 
of  such  foreign  coins  as  may  be  known  to  our  commerce,  to 
determine  their  average  weight,  fineness,  and  value,  and 
to  embrace  in  his  annual  report  a  statement  of  the  results 
thereof. 

[Approved,  February  21,  1857.     11  Statutes  at  Large,  163] 

NOTE.  —  Section  3566  of  the  Revised  Statutes  of  1874  provides  that 
"all  foreign  gold  and  silver  coins  received  in  payment  for  moneys  due 
to  the  United  States  shall,  before  being  issued  in  circulation,  be  coined 
anew." 

1872-73,  Chap.  CXXXI.  —  An  Act  revising  and  amending 
the  Laws  relative  to  the  Mints,  Assay-offices,  and  Coin- 
age of  the  United  States. 

SEC.  13.  That  the  standard  for  both  gold  and  silver  coins 
of  the  United  States  shall  be  such  that  of  one  thousand  parts 
by  weight  nine  hundred  shall  be  of  pure  metal  and  one  hun- 
dred of  alloy ;  and  the  alloy  of  the  silver  coins  shall  be  of 
copper,  and  the  alloy  of  the  gold  coins  shall  be  of  copper,  or 
of  copper  and  silver ;  but  the  silver  shall  in  no  case  exceed 
one  tenth  of  the  whole  alloy. 

SEC.  14.  That  the  gold  coins  of  the  United  States  shall  be 
a  one-dollar  piece,  which,  at  the  standard  weight  of  twenty- 
five  and  eight-tenths  grains,  shall  be  the  unit  of  value  ;  a 
quarter-eagle,  or  two-and-a-half  dollar  piece ;  a  three-dollar 
piece  ;  a  half-eagle,  or  five-dollar  piece  ;  an  eagle  or  ten-dollar 
piece  ;  and  a  double  eagle,  or  twenty-dollar  piece.  And  the 
standard  weight  of  the  gold  dollar  shall  be  twenty-five  and 
eight-tenths  grains ;  of  the  quarter-eagle,  or  two-and-a-half 
dollar  piece,  sixty-four  and  a  half  grains  ;  of  the  three-dollar 
piece,  seventy-seven  and  four-tenths  grains  ;  of  the  half-eagle, 
or  five-dollar  piece,  one  hundred  and  twenty -nine  grains  ;  of 
the  eagle,  or  ten-dollar  piece,  two  hundred  and  fifty-eight 
grains ;  of  the  double-eagle,  or  twenty-dollar  piece,  five  hun- 

16 


242  SILVER   COINS   ENUMERATED.  [1873. 

dred  and  sixteen  grains ;  which  coins  shall  be  a  legal  tender 
in  all  payments  at  their  nominal  value  when  not  below  the 
standard  weight  and  limit  of  tolerance  provided  in  this  act  for 
the  single  piece,  and,  when  reduced  in  weight,  below  said 
standard  and  tolerance,  shall  be  a  legal  tender  at  valuation  in 
proportion  to  their  actual  weight ;  and  any  gold  coin  of  the 
United  States,  if  reduced  m  weight  by  natural  abrasion  not 
more  than  one-half  of  one  per  centum  below  the  standard 
weight  prescribed  by  law,  after  a  circulation  of  twent}'  years, 
as  shown  b}-  its  date  of  coinage,  and  at  a  ratable  proportion 
for  an}-  period  less  than  twenty  years,  shall  be  received  at 
their  nominal  value  lay  the  United  States  treasury  and  its 
offices,  under  such  regulations  as  the  Secretaiy  of  the  Treas- 
ury may  prescribe  for  the  protection  of  the  government  against 
fraudulent  abrasion  or  other  practices  ;  and  any  gold  coins  in 
the  treasury  of  the  United  States  reduced  in  weight  below  this 
limit  of  abrasion  shall  be  recoined. 

SEC.  15.  That  the  silver  coins  of  the  United  States  shall 
be  a  trade-dollar,  a  half-dollar,  or  fifty  cent  piece,  a  quarter- 
dollar,  or  twenty-five  cent  piece,  a  dime,  or  ten-cent  piece ; 
and  the  weight  of  the  trade-dollar  shall  be  four  hundred  and 
twenty  grains  troy ;  the  weight  of  the  half-dollar  shall  be 
twelve  grams  (grammes)  and  one-half  of  a  gram,  (gramme)  ; 
the  quartei'-dollar  and  the  dime  shall  be  respectively,  one-half 
and  one-fifth  of  the  weight  of  said  half-dollar  ;  and  said  coins 
shall  be  a  legal  tender  at  their  nominal  value  for  any  amount 
not  exceeding  five  dollars  in  any  one  payment. 

SEC.  16.  That  the  minor  coins  of  the  United  States  shall 
be  a  five-cent  piece,  a  three-cent  piece,  and  a  one-cent  piece, 
and  the  alloy  for  the  five  and  three-cent  pieces  shall  be  of 
copper  and  nickel,  to  be  composed  of  three-fourths  copper 
and  one-fourth  nickel,  and  the  alloy  of  the  one-cent  piece  shall 
be  ninety-five  per  centum  of  copper  and  five  per  centum  of 
tin  and  zinc,  in  such  proportions  as  shall  be  determined  by 
the  director  of  the  mint.  The  weight  of  the  piece  of  five 
cents  shall  be  seventy-seven  and  sixteen  hundredths  grains, 
troy ;  of  the  three-cent  piece,  thirty  grains  ;  and  of  the  one- 
cent  piece,  forty-eight  grains ;  which  coins  shall  be  a  legal 


1873.]  COINAGE   OF   TRADE-DOLLARS.  243 

tender,  at  their  nominal  value,  for  any  amount  not  exceeding 
twentj-five  cents  in  any  one  payment. 

SEC.  17.  That  no  coins,  either  of  gold,  silver,  or  minor 
coinage,  shall  hereafter  be  issued  from  the  mint  other  than 
those  of  the  denominations,  standards,  and  weights  herein 
set  forth. 

SEC.  21.  That  any  owner  of  silver  bullion  may  deposit  the 
same  at  any  mint,  to  be  formed  into  bars,  or  into  dollars  of 
the  weight  of  four  hundred  and  twenty  grains,  troy,  designated 
in  this  act  as  trade-dollars,  and  no  deposit  of  silver  for  other 
coinage  shall  be  received ;  but  silver  bullion  contained  in  gold 
deposits,  and  separated  therefrom,  may  be  paid  for  in  silver 
coin,  at  such  valuation  as  may  be,  from  time  to  time,  estab- 
lished by  the  director  of  the  mint. 

SEC.  25.  That  the  charge  for  converting  standard  gold  bul- 
lion into  coin  shall  be  one-fifth  of  one  per  centum  ;  and  the 
charges  for  converting  standard  silver  into  trade-dollars,  for 
melting  and  refining  when  bullion  is  below  standard,  for  tough- 
ening when  metals  are  contained  in  it  which  render  it  unfit  for 
coinage,  for  copper  used  for  alloy  when  the  bullion  is  above 
standard,  for  separating  the  gold  and  silver  when  these  metals 
exist  together  in  the  bullion,  and  for  the  preparation  of  bars, 
shall  be  fixed,  from  time  to  time,  by  the  director,  with  the 
concurrence  of  the  Secretary  of  the  Treasun-,  so  as  to  equal 
but  not  exceed,  in  their  judgment,  the  actual  average  cost  to 
each  mint  and  assa}'-office  of  the  material,  labor,  wastage,  and 
use  of  machinery  emploj'ed  in  each  of  the  cases  aforementioned. 
[Approved,  February  12,  1873.  17  Statutes  at  Large,  424.] 

NOTE.  — By  an  Act  approved  March  3,  1875,  the  coinage  of  a  twenty- 
cent  piece,  in  conformity  with  the  provisions  made  as  to  other  subsidiary 
silver  coins,  was  authorized.  See  18  Statutes  at  Large,  part  3,  478. 

This  act  was  repealed  May  2,  1878.     20  -ibid.,  47. 

1872-73,  Chap.  CCLXVIII.  —  An  Act  to  establish  the  Custom- 
house Value  of  the  Sovereign  or  Pound  sterling  of 
Great  Britain,  and  to  fix  the  Par  of  Exchange. 

Be  it  enacted,  .  .  .  That  the  value  of  foreign  coin  as  ex- 
pressed in  the  money  of  account  of  the  United  States  shall  be 


244  PAR   OF   STERLING    EXCHANGE.  [1874. 

that  of  the  pure  metal  of  such  coin  of  standard  value ;  and 
the  values  of  the  standard  coins  in  circulation  of  the  various 
nations  of  the  world  shall  be  estimated  annually  by  the  di- 
rector of  the  mint,  and  be  proclaimed  on  the  first  day  of  Jan- 
uary b}"  the  Secretaiy  of  the  Treasury. 

SEC.  2.  That  in  all  payments  by  or  to  the  treasury,  whether 
made  here  or  in  foreign  countries,  where  it  becomes  necessary 
to  compute  the  value  of  the  sovereign  or  pound  sterling,  it 
shall  be  deemed  equal  to  four  dollars  eighty-six  cents  and  six 
and  one-half  mills,  and  the  same  rule  shall  be  applied  in  ap- 
praising merchandise  imported  where  the  value  is,  by  the  in- 
voice, in  sovereigns  or  pounds  sterling,  and  in  the  construction 
of  contracts  payable  in  sovereigns  or  pounds  sterling ;  and 
this  valuation  shall  be  the  par  of  exchange  between  Great 
Britain  and  the  United  States ;  and  all  contracts  made  after 
the  first  da}'  of  January,  eighteen  hundred  and  seventj'-four, 
based  on  an  assumed  par  of  exchange  with  Great  Britain  of 
fifty-four  pence  to  the  dollar,  or  four  dollars  fortj'-four  and 
four-ninth  cents  to  the  sovereign  or  pound  sterling,  shall  be 
null  and  void. 

SEC.  3.  That  all  acts  and  parts  of  acts  inconsistent  with 
these  provisions  be,  and  the  same  are  hereby,  repealed. 

[Approved,  March  3,  1873.     17  Statutes  at  Large,  602.] 

NOTE.  —  For  previous  determinations  of  the  value  of  the  pound  sterling 
see  the  acts  of  July  14,  1832,  4  Statutes  at  Large,  593,  and  July  27,  1842, 
6  ibid.,  496. 

1873-74.  —  Revised  Statutes  of  the   United  States :  Title 
xxxix.,  Legal  Tender. 

SEC.  3584.  No  foreign  gold  or  silver  coins  shall  be  a  legal 
tender  in  payment  of  debts. 

SEC.  3585.  The  gold  coins  of  the  United  States  shall  be  a 
legal  tender  in  all  payments  at  their  nominal  value  when  not 
below  the  standard  weight  and  limit  of  tolerance  provided  by- 
law for  the  single  piece,  and,  when  reduced  in  weight  below 
such  standard  and  tolerance,  shall  be  a  legal  tender  at  valua- 
tion in  proportion  to  their  actual  weight. 

SEC.  3586.   The  silver  coins  of  the  United  States  shall  be  a 


1876.]     SPECIE  RESUMPTION:  ISSUE  OF  SILVER  COIN.         245 

legal  tender  at  their  nominal  value  for  any  amount  not  exceed- 
ing five  dollars  in  any  one  payment. 

[By  section  2  of  the  joint  resolution  of  July  22,  1870,  the  trade  dollar 
ceased  to  be  a  legal  tender,  and  by  section  I  of  the  Act  of  February  28, 
1878,  the  standard  silver  dollar  became  a  legal  tender  without  limit  of 
amount.  See  below,  page  240.] 

SEC.  3587.  The  minor  coins  of  the  United  States  shall  be  a 
legal  tender,  at  their  nominal  value  for  any  amount  not  exceed- 
ing twenty-five  cents  in  any  one  payment. 

[Approved,  June  22,  1874.     Revised  Statutes,  712.] 

NOTE.  —  An  Act  of  June  22,  1874,  authorizes  the  Secretary  of  the 
Treasury  to  exchange  gold  mint  bars  for  coin  certificates  or  gold  coins, 
at  not  less  than  par  nor  less  than  market  value.  18  Statutes  at  Large, 
part  3,  202. 

1874-75,  Chap.  XV.  —  An  Act  to  provide  for  the  resumption 
of  specie  payments. 

[For  sections  1  and  2  of  this  act,  providing  for  the  coinage  of  small 
silver  coins  and  their  issue  in  redemption  of  fractional  currency,  and  for 
the  discontinuance  of  the  charge  made  for  coining  gold  bullion,  see  ante, 
page  214.] 

[Approved,  January  14,  1875.     18  Statutes  at  Large,  part  3,  290.] 

1875-76,  Resolution  No.  XVII.  —  Joint  Resolution  for  the 
Issue  of  silver  coin. 

Resolved,  .  .  .  That  the  Secretary  of  the  Treasury,  under 
such  limits  and  regulations  as  will  best  secure  a  just  and  fair 
distribution  of  the  same  through  the  country,  may  issue  the 
silver  coin  at  any  time  in  the  Treasury  to  an  amount  not  ex- 
ceeding ten  million  dollars,  in  exchange  for  an  equal  amount 
of  legal-tender  notes  ;  and  the  notes  so  received  in  exchange 
shall  be  kept  as  a  special  fund  separate  and  apart  from  all 
other  money  in  the  Treasuiy,  and  be  reissued  only  upon  the 
retirement  and  destruction  of  a  like  sum  of  fractional  currency 
received  at  the  Treasury  in  payment  of  dues  to  the  United 
States ;  and  said  fractional  currency,  when  so  substituted, 
shall  be  destro}'ed  and  held  as  part  of  the  sinking  fund,  as 
provided  in  the  act  approved  April  seventeen,  eighteen  hun- 
dred and  seventy-six. 


246  COINAGE    OF   THE    STANDARD    SILVER   DOLLAR.         [1878. 

[Under  section  3  of  the  Act  of  June  21,  1879,  making  appropriations 
for  legislative,  executive,  and  judicial  expenses,  in  order  to  provide  for 
the  speedy  payment  of  arrearages  of  pensions,  the  Secretary  of  the  Treas- 
ury is  directed  to  issue  immediately  in  payment  thereof,  the  legal-tender 
notes  held  as  a  special  fund  under  the  authority  given  above,  and  it  is 
further  provided  that  "  fractional  currency  presented  for  redemption  shall 
be  redeemed  in  any  moneys  in  the  Treasury  not  otherwise  appropriated." 
See  21  Statutes  at  Large,  30.] 

SEC.  2.  That  the  trade  dollar  shall  not  hereafter  be  a  legal 
tender,  and  the  Secretary  of  the  Treasury  is  herelty  authorized 
to  limit  from  time  to  time,  the  coinage  thereof  to  such  an 
amount  as  he  may  deem  sufficient  to  meet  the  export  demand 
for  the  same. 

SEC.  3.  That  in  addition  to  the  amount  of  subsidiary  silver 
coin  authorized  by  law  to  be  issued  in  redemption  of  the  frac- 
tional currenc}*  it  shall  be  lawful  to  manufacture  at  the  several 
mints,  and  issue  through  the  Treasury  and  its  several  offices, 
such  coin,  to  an  amount,  that,  including  the  amount  of  sub- 
sidiary silver  coin  and  of  fractional  currency  outstanding, 
shall,  in  the  aggregate,  not  exceed,  at  any  time,  fifty  million 
dollars. 

[Section  4  authorizes  the  Secretary  of  the  Treasury  to  purchase  bullion 
for  the  purposes  of  this  resolution,  and  requires  any  gain  arising  from  the 
coinage  thereof  to  be  paid  into  the  Treasury.] 

[Approved,  July  22,  1876.     19  Statutes  at  Large,  215.] 

1877-78,  Chap.  XX.  —  An  Act  to  authorize  the  coinage 
of  the  standard  silver  dollar,  and  to  restore  its  legal- 
tender  character. 

Be  it  enacted,  .  .  .  That  there  shall  be  coined,  at  the  sev- 
eral mints  of  the  United  States,  silver  dollars  of  the  weight  of 
four  hundred  and  twelve  and  a  half  grains  Troy  of  standard 
silver,  as  provided  in  the  act  of  January  eighteenth,  eighteen 
hundred  thirty-seven,  on  which  shall  be  the  devices  and  super- 
scriptions provided  b}*  said  act ;  which  coins  together  with  all 
silver  dollars  heretofore  coined  by  the  United  States,  of  like 
weight  and  fineness,  shall  be  a  legal  tender,  at  their  nominal 
value,  for  all  debts  and  dues  public  and  private,  except  where 
otherwise  expressly  stipulated  in  the  contract.  And  the  Sec- 


1878.]      INTERNATIONAL  MONETARY  CONFERENCE.       247 

retary  of  the  Treasury  is  authorized  and  directed  to  purchase, 
from  time  to  time,  silver  bullion,  at  the  market  price  thereof, 
not  less  than  two  million  dollars  worth  per  month,  nor  more 
than  four  million  dollars  worth  per  month,  and  cause  the  same 
to  be  coined  monthly,  as  fast  as  so  purchased,  into  such  dol- 
lars ;  and  a  sum  sufficient  to  carry  out  the  foregoing  provision 
of  this  act  is  hereby  appropriated  out  of  an}-  money  in  the 
Treasury  not  otherwise  appropriated.  And  an}r  gain  or  seign- 
iorage arising  from  this  coinage  shall  be  accounted  for  and 
paid  into  the  Treasury,  as  provided  under  existing  laws  rela- 
tive to  the  subsidiary  coinage  :  Provided,  That  the  amount 
of  money  at  any  one  time  invested  in  such  silver  bullion,  ex- 
clusive of  such  resulting  coin,  shall  not  exceed  five  million 
dollars  :  And  provided  further,  That  nothing  in  this  act  shall 
be  construed  to  authorize  the  payment  in  silver  of  certificates 
of  deposit  issued  under  the  provisions  of  section  two  hundred 
and  fifty-four  of  the  Revised  Statutes. 

[The  provisions  of  section  254  of  the  Revised  Statutes  are  contained  in 
section  5  of  the  act  of  March  3,  1863,  on  page  176.] 

SEC.  2.  That  immediately  after  the  passage  of  this  act,  the 
President  shall  invite  the  governments  of  the  countries  com- 
posing the  Latin  Union,  so  called,  and  of  such  other  European, 
nations  as  he  may  deem  advisable,  to  join  the  United  States 
in  a  conference  to  adopt  a  common  ratio  between  gold  and 
silver,  for  the  purpose  of  establishing,  internationally,  the  use 
of  bi-metallic  money,  and  securing  fixity  of  relative  value  be- 
tween those  metals  ;  such  conference  to  be  held  at  such  place, 
in  Europe  or  in  the  United  States,  at  such  time  within  six 
months,  as  may  be  mutually  agreed  upon  by  the  executives  of 
the  governments  joining  in  the  same,  whenever  the  govern- 
ments so  invited,  or  any  three  of  them,  shall  have  signified 
their  willingness  to  unite  in  the  same. 

The  President  shall,  by  and  with  the  advice  and  consent 
of  the  Senate,  appoint  three  commissioners,  who  shall  attend 
such  conference  on  behalf  of  the  United  States,  and  shall 
report  the  doings  thereof  to  the  President,  who  shall  trans- 
mit the  same  to  Congress. 


248  SILVER   CERTIFICATES.  [1879. 

Said  commissioners  shall  each  receive  the  sum  of  twentj-- 
five  hundred  dollars  and  their  reasonable  expenses,  to  be 
approved  by  the  Secretary  of  State  ;  and  the  amount  neces- 
sary to  pay  such  compensation  and  expenses  is  hereby  ap- 
propriated out  of  any  money  in  the  Treasury  not  otherwise 
appropriated. 

SEC.  3.  That  an}*  bolder  of  the  coin  authorized  by  this  act 
may  deposit  the  same  with  the  Treasurer  or  any  assistant 
treasurer  of  the  United  States,  in  sums  not  less  than  ten  dol- 
lars, and  receive  therefor  certificates  of  not  less  than  ten  dollars 
each,  corresponding  with  the  denominations  of  the  United 
States  notes.  The  coin  deposited  for  or  representing  the 
certificates  shall  be  retained  in  the  Treasury  for  the  payment 
of  the  same  on  demand.  Such  certificates  shall  be  receivable 
for  customs,  taxes,  and  all  public  dues,  and,  when  so  received, 
may  be  reissued. 

[By  the  Act  of  August  4,  1886,  making  appropriations  for  sundry  civil 
expenses  for  the  fiscal  year  1887,  the  issue  of  silver  certificates  in  de- 
nominations of  one,  two,  and  five  dollars  is  required,  the  certificates  to  be 
receivable,  redeemable,  and  payable  as  is  provided  in  the  above  section, 
and,  upon  the  presentation  of  those  of  larger  denominations,  to  be  issued 
in  lieu  thereof.  24  Statutes  at  Large,  227  ] 

SEC.  4.  All  acts  and  parts  of  acts  inconsistent  with  the 
provisions  of  this  act  are  hereby  repealed. 

NOTE.  —  The  above  act  having  been  returned  by  the  President  of 
the  United  States,  with  his  objections,  to  the  House  of  Representatives, 
February  28,  1878,  was  passed  by  both  Houses,  and  became  a  law  on  the 
same  day. 

[20  Statutes  at  Large,  25.] 

1879,  Chap.  XII.  —  An  Act  to  provide  for  the  exchange  of 
subsidiary  coins  for  lawful  money  of  the  United  States 
under  certain  circumstances,  and  to  make  such  coins  a 
legal  tender  in  all  sums  not  exceeding  ten  dollars,  and 
for  other  purposes. 

Be  it  enacted,  .  .  .  That  the  holder  of  any  of  the  silver 
coins  of  the  United  States  of  smaller  denominations  than  one 
dollar,  may,  on  presentation  of  the  same  in  sums  of  twenty 


1887.]  TRADE-DOLLARS    RETIRED.  249 

dollars,  or  an}'  multiple  thereof,  at  the  office  of  the  Treasurer 
or  any  assistant  treasurer  of  the  United  States,  receive 
therefor  lawful  money  of  the  United  States. 

SEC.  2.  The  Treasurer  or  any  assistant  treasurer  of  the 
United  States  who  may  receive  any  coins  under  the  provision 
of  this  act  shall  exchange  the  same  in  sums  of  twenty  dol- 
lars, or  any  multiple  thereof,  for  lawful  money  of  the  United 
States,  on  demand  of  any  holder  thereof. 

SEC.  3.  That  the  present  silver  coins  of  the  United  States 
of  smaller  denominations  than  one  dollar  shall  hereafter  be  a 
legal  tender  in  all  sums  not  exceeding  ten  dollars  in  full  pay- 
ment of  all  dues  public  and  private. 

SEC.  4.  That  all  laws  or  parts  of  laws  in  conflict  with  this 
act  be,  and  the  same  are  hereby,  repealed. 

[Approved,  June  9..1879.    21  Statutes  at  Large,  7.] 

1881-82,  Chap.  CXC.  —  An  Act  to  authorize  the  receipt  of 
United  States  gold  coin  in  exchange  for  gold  bars. 

JBe  .it  enacted,  .  .  .  That  the  superintendents  of  the  coin- 
age mints,  and  of  the  United  States  assay-office  at  New  York, 
are  hereby  authorized  to  receive  United  States  gold  coin  from 
any  holder  thereof  in  sums  not  less  than  five  thousand  dol- 
lars, and  to  pay  and  deliver  in  exchange  therefor  gold  bars 
in  value  equalling  such  coin  so  received. 

[Approved,  May  2G,  1882.    22  Statutes  at  Large,  97.] 

1886-87,  Chap.  CCCXC VI.  —  An  Act  for  the  retirement  and 
recoinage  of  the  trade-dollar. 

J5e  it  enacted,  .  .  .  That  for  a  period  of  six  months  after 
the  passage  of  this  act,  United  States  trade-dollars,  if  not 
defaced,  mutilated,  or  stamped,  shall  be  received  at  the 
office  of  the  Treasurer,  or  an}-  assistant-treasurer  of  the 
United  States  in  exchange  for  a  like  amount,  dollar  for 
dollar,  of  standard  silver  dollars,  or  of  subsidiary  coins 
of  the  United  States. 

SEC.  2.  That  the  trade-dollars  received  by,  paid  to,  or 
deposited  with  the  Treasurer  or  any  assistant  treasurer  or 


250  PURCHASES   OF    SILVER   BULLION.  [1890. 

national  depositary  of  the  United  States  shall  not  be  paid 
out  or  in  any  other  manner  issued,  but,  at  the  expense  of 
the  United  States,  shall  be  transmitted  to  the  coinage  mints 
and  recoined  into  standard  silver  dollars  or  subsidiaiy  coin, 
at  the  discretion  of  the  Secretaiy  of  the  Treasury  :  Provided ; 
That  the  trade-dollars  recoined  under  this  act  shall  not  be 
counted  as  part  of  the  silver  bullion  required  to  be  purchased 
and  coined  into  standard  dollars  as  required  by  the  act  of 
February  twenty-eighth,  eighteen  hundred  and  seventy-eight. 
SEC.  3.  That  all  laws  and  parts  of  laws  authorizing  the 
coinage  and  issuance  of  United  States  trade-dollars  are  hereby 

repealed. 

Received  by  the  President,  February  19,  1887. 

[NOTE  BY  THE  DEPARTMENT  OF  STATE.  —  The  foregoing  act  having 
been  presented  to  the  President  of  the  United  States  for  his  approval,  and 
not  having  been  returned  by  him  to  the  house  of  Congress  in  which  it 
originated  within  the  time  prescribed  by  the  Constitution  of  the  United 
States,  has  become  a  law  without  his  approval.] 

[24  Statutes  at  Large,  634.] 

1889-90,  Chap.  DCCVIII.  —  An  Act  directing  the  purchase 
of  silver  bullion  and  the  issue  of  Treasury  notes  thereon, 
and  for  other  purposes. 

Be  it  enacted,  .  .  .  That  the  Secretaiy  of  the  Treasury  is 
hereby  directed  to  purchase,  from  time  to  time,  silver  bullion 
to  the  aggregate  amount  of  four  million  five  hundred  thousand 
ounces,  or  so  much  thereof  as  may  be  offered  in  each  month, 
at  the  market  price  thereof,  not  exceeding  one  dollar  for  three 
hundred  and  seventj'-one  and  twei^-fivc  hundredths  grains 
of  pure  silver,  and  to  issue  in  payment  for  such  purchases  of 
silver  bullion  Treasury  notes  of  the  United  States  to  be  pre- 
pared by  the  Secretaiy  of  the  Treasury,  in  such  form  and  of 
such  denominations,  not  less  than  one  dollar  nor  more  than 
one  thousand  dollars,  as  he  may  prescribe,  and  a  sum  sufficient 
to  carry  into  effect  the  provisions  of  this  act  is  hereby  appro- 
priated out  of  any  money  in  the  Treasury  not  otherwise 
appropriated. 

SEC.  2.    That  the  Treasury  notes  issued  in  accordance  with 


1890.]        TREASURY   NOTES   TO   BE    ISSUED   THEREFOR.  251 

the  provisions  of  this  act  shall  be  redeemable  on  demand,  in 
coin,  at  the  Treasury  of  the  United  States,  or  at  the  office  of 
any  assistant  treasurer  of  the  United  States,  and  when  so  re- 
deemed may  be  reissued ;  but  no  greater  or  less  amount  of 
such  notes  shall  be  outstanding  at  any  time  than  the  cost  of 
the  silver  bullion  and  the  standard  silver  dollars  coined  there- 
from, then  held  in  the  Treasury  purchased  by  such  notes  ;  and 
such  Treasuiy  notes  shall  be  a  legal  tender  in  payment  of  all 
debts,  public  and  private,  except  where  otherwise  expressly 
stipulated  in  the  contract,  and  shall  be  receivable  for  customs, 
taxes,  and  all  public  dues,  and  when  so  received  may  be  re- 
issued ;  and  such  notes,  when  held  by  any  national  banking 
association,  may  be  counted  as  a  part  of  its  lawful  reserve. 
That  upon  demand  of  the  holder  of  any  of  the  Treasury  notes 
herein  provided  for  the  Secretary  of  the  Treasury  shall,  under 
such  regulations  as  he  may  prescribe,  redeem  such  notes  in 
gold  or  silver  coin,  at  his  discretion,  it  being  the  established 
policy  of  the  United  States  to  maintain  the  two  metals  on  a 
parity  with  each  other  upon  the  present  legal  ratio,  or  such 
ratio  as  may  be  provided  by  law. 

SEC.  3.  That  the  Secretary  of  the  Treasury  shall  each  month 
coin  two  million  ounces  of  the  silver  bullion  purchased  under 
the  provisions  of  this  act  into  standard  silver  dollars  until  the 
first  day  of  July  eighteen  hundred  and  ninety-one,  and  after 
that  time  he  shall  coin  of  the  silver  bullion  purchased  under 
the  provisions  of  this  act  as  much  as  may  be  necessary  to 
provide  for  the  redemption  of  the  Treasury  notes  herein  pro- 
vided for,  and  any  gain  or  seigniorage  arising  from  such  coin- 
age shall  be  accounted  for  and  paid  into  the  Treasury. 

SEC.  4.  That  the  silver  bullion  purchased  under  the  provis- 
ions of  this  act  shall  be  subject  to  the  requirements  of  existing 
law  and  the  regulations  of  the  mint  service  governing  the 
methods  of  determining  the  amount  of  pure  silver  contained, 
and  the  amount  of  charges  or  deductions,  if  any,  to  be  made. 

SEC.  5.  That  so  much  of  the  act  of  Februarj7  twenty-eighth, 
eighteen  hundred  and  seventy-eight,  entitled  "An  act  to  au- 
thorize the  coinage  of  the  standard  silver  dollar  and  to  restore 
its  legal-tender  character,"  as  requires  the  monthly  purchase 


252  REDEMPTION    OF   NATIONAL    BANK   NOTES.  [1890. 

and  coinage  of  the  same  into  silver  dollars  of  not  less  than 
two  million  dollars,  nor  more  than  four  million  dollars  worth 
of  silver  bullion,  is  hereby  repealed. 

SEC.  6.  That  upon  the  passage  of  this  act  the  balances 
standing  with  the  Treasurer  of  the  United  States  to  the  re- 
spective credits  of  national  banks  for  deposits  made  to  redeem 
the  circulating  notes  of  such  banks,  and  all  deposits  thereafter 
received  for  like  purpose,  shall  be  covered  into  the  Treasury 
as  a  miscellaneous  receipt,  and  the  Treasury  of  the  United 
States  shall  redeem  from  the  general  cash  in  the  Treasury  the 
circulating  notes  of  said  banks  which  ma}-  come  into  his  pos- 
session subject  to  redemption  ;  and  upon  the  certificate  of  the 
Comptroller  of  the  Currency  that  such  notes  have  been  re- 
ceived by  him  and  that  the}-  have  been  destroyed  and  that  no 
new  notes  will  be  issued  in  their  place,  reimbursement  of  their 
amount  shall  be  made  to  the  Treasurer,  under  such  regulations 
as  the  Secretary  of  the  Treasuiy  may  prescribe,  from  an  ap- 
propriation hereby  created,  to  be  known  as  National  bank 
notes :  Redemption  account,  but  the  provisions  of  this  act 
shall  not  apply  to  the  deposits  received  under  section  three  of 
the  act  of  June  twentieth,  eighteen  hundred  and  seventy-four, 
requiring  every  National  bank  to  keep  in  lawful  money  with 
the  Treasurer  of  the  United  States  a  sum  equal  to  five  per 
centum  of  its  circulation,  to  be  held  and  used  for  the  redemp- 
tion of  its  circulating  notes  ;  and  the  balance  remaining  of  the 
deposits  so  covered  shall,  at  the  close  of  each  month,  be  re- 
ported on  the  monthty  public  debt  statement  as  debt  of  the 
United  States  bearing  no  interest. 

Sec.  7.  That  this  act  shall  take  effect  thirty  days  from  and 
after  its  passage. 

[Approved,  July  14,  1890.    26  Statutes  at  Large,  289.] 

1889-90,  Chap.  DCCCCXLV.  —  An  Act  to  discontinue  the 
coinage  of  the  three-dollar  and  one-dollar  gold  pieces  and 
three-cent  nickel  piece. 

[Approved,  September  26, 1890.    26  Statutes  at  Large,  485.] 


1891.]          'EXCHANGE  OF  GOLD  BARS  FOR  COIN.  252* 

1890-91,  Chap.  .  —  An  Act  making  appropriations  for 
the  legislative,  executive,  and  judicial  expenses  of  the 
Government  for  the  fiscal  year  ending  June  thirtieth, 
eighteen  hundred  and  ninety-two,  and  for  other 
purposes. 

SEC.  3.  That  an  act  to  authorize  the  receipt  of  United 
States  gold  coin  in  exchange  for  gold  bars,  approved  May 
twenty-sixth,  eighteen  hundred  and  eighty-two,  be  amended 
to  read  as  follows : 

That  the  superintendents  of  the  coinage  mints  and  of  the 
United  States  assay  office  at  New  York  may,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  but  not  otherwise, 
receive  United  States  gold  coin  from  an}'  holder  thereof  in 
sums  of  not  less  than  five  thousand  dollars,  and  pay  and 
deliver  in  exchange  therefor  gold  bars  in  value  equaling 
such  coin  so  received :  Provided,  That  the  Secretary  of  the 
Treasury  may  impose  for  such  exchange  a  charge  which  in 
his  judgment  shall  equal  the  cost  of  manufacturing  the  bars. 
[Approved,  March  3,  1891.  Printed  for  Congress.] 


PART    IV. 
VETOED  BILLS  AND  OTHER  DOCUMENTS. 


Resolves  of  the  Confederation  respecting  Coinage. 
July  6,  1785. 

Resolved,  That  the  money  unit  of  the  United  States  of 
America  be  one  dollar. 

Resolved,  That  the  smallest  coin  be  of  copper,  of  which 
200  shall  pass  for  one  dollar. 

Resolved,  That  the  several  pieces  shall  increase  in  a  deci- 
mal ratio. 

[Journal  of  Congress,  1785,  p.  225.] 

August  8,  1786. 

Resolved,  That  .the  standard  of  the  United  States  of 
America,  for  gold  and  silver,  shall  be  eleven  parts  fine  and 
one  part  alloy. 

That  the  money  unit  of  the  United  States,  being  by  the 
resolve  of  Congress  of  the  6th  July,  1785,  a  dollar,  shall  con- 
tain of  fine  silver,  three  hundred,  and  seventy-five  grains,  and 
sixt3'-four  hundred ths  of  a  grain. 

That  the  money  of  account,  to  correspond  with  the  division 
of  coins,  agreeably  to  the  above  resolve,  proceed  in  a  decimal 
ratio,  agreeably  to  the  forms  and  manner  following,  viz. 

Mills,  —  The  lowest  money  of  accompt,  of  which  one 
thousand  shall  be  equal  to  the  federal  dollar,  or 
money  unit, 0.001 

Cents,  —  The  highest  copper  piece,  of  which  one  hun- 
dred shall  be  equal  to  the  dollar, 0.010 

Dimes,  —  The  lowest  silver  coin,  ten  of  which  shall  be 

equal  to  the  dollar, 0.100 

Dollar,  —  The  highest  silver  coin, 1.000 


254  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1786. 

That  betwixt  the  dollar  and  the  lowest  copper  coin,  as 
fixed  by  the  resolve  of  Congress  of  the  6th  July,  1785,  there 
shall  be  three  silver  coins,  and  one  copper  coin. 

That  the  silver  coins  shall  be  as  follows :  One  coin  con- 
taining one  hundred  and  eight3'-seven  grains,  and  eighty-two 
hundredths  of  a  grain  of  fine  silver,  to  be  called  A  Half 
Dollar:  One  coin  containing  seventy-five  grains,  and  one 
hundred  and  twentj'-eight  thousandths  of  a  grain  of  fine 
silver,  to  be  called  A  Double  Dime :  And  one  coin  contain- 
ing thirty-seven  grains  and  five  hundred  and  sixty-four  thou- 
sandths of  a  grain  of  fine  silver,  to  be  called  A  Dime. 

That  the  two  copper  coins  shall  be  as  follows  ;  one  equal 
to  the  one  hundredth  part  of  the  federal  dollar,  to  be  called 
A  Cent:  And  one  equal  to  the  two  hundredth  part  of  the 
federal  dollar,  to  be  called  A  Half  Cent. 

That  two  pounds  and  a  quarter  avoirdupois  weight  of  cop- 
per, shall  constitute  one  hundred  cents. 

That  there  shall  be  two  gold  coins :  One  containing  two 
hundred  and  forty-six  grains,  and  two  hundred  and  sixty- 
eight  thousandths  of  a  grain  of  fine  gold,  equal  to  ten  dol- 
lars, to  be  stamped  with  the  impression  of  the  American 
eagle,  and  to  be  called  An  Eagle:  One  containing  one  hun- 
dred and  twent}'-three  grains,  and  one  hundred  and  thirty- 
four  thousandths  of  a  grain  of  fine  gold,  equal  to  five 
dollars,  to  be  stamped  in  like  manner,  and  to  be  called 
A  Half-Eagle. 

That  the  mint  price  of  a  pound  troy  weight  of  uncoined 
silver,  eleven  parts  fine  and  one  part  alloy,  shall  be  nine  dol- 
lars, nine  dimes  and  two  cents. 

That  the  mint  price  of  a  pound  troy  weight  of  uncoined 
gold,  eleven  parts  fine  and  one  part  alloy,  shall  be  two  hun- 
dred and  nine  dollars,  seven  dimes  and  seven  cents. 

Ordered,  That  the  board  of  treasury  report  the  draft  of  an 
ordinance  for  the  establishment  of  a  mint. 

[Journal  of  Congress,  1786,  p.  179.] 


1787.]  ACCOUNTS    WITH   THE    STATES.  255 

Ordinance  for  Settling  Accounts  with  the  States. 
May  7,  1787. 

An  ordinance  for  settling  the  accounts  between  the  United 
States  and  individual  States. 

Be  it  ordained  by  the  United  States  in  Congress  assem- 
bled, that  five  commissioners  be  appointed  b}-  the  board  of 
treasury,  whose  duty  it  shall  be  to  go  to  the  several  states 
in  the  districts  hereinafter  mentioned,  for  which  they  may  be 
respectively  appointed,  for  the  purpose  of  stating  the  ac- 
counts of  the  states  within  those  districts,  against  the  United 
States.  .  .  . 

That  it  shall  be  the  dut}*  of  the  said  commissioners  re. 
spectively  to  receive  of  the  states  for  which  they  are  ap- 
pointed, all  their  accounts  and  vouchers  for  pa}-ments  made 
on  account  of  bounties,  pay  and  depreciation  of  pay,  to  the 
late  arm}-  of  the  United  States  :  and  for  advances  to  the  mili- 
tia, called  out  under  the  authority  of  the  United  States,  and 
actually  in  their  service,  and  to  give  descriptive  acknowledg- 
ments thereof  to  the  states  from  which  the}T  may  be  received, 
which  accounts  and  vouchers  shall  be  immediately  forwarded 
to  the  commissioner  of  arm}'  accounts,  whose  dut}r  it  shall  be 
to  examine  and  pass  such  as  are  authorized  by  the  resolves 
of  Congress,  and  supported  b}'  proper  vouchers  ;  and  to  state 
such  as  ma}7  not  fall  under  the  above  description,  together 
with  such  remarks  as  ma}T  tend  to  elucidate  the  nature  of 
these  claims. 

That  it  shall  further  be  the  duty  of  the  said  commission- 
ers, to  receive  in  like  manner,  the  accounts  and  vouchers  for 
monies  paid,  and -supplies  furnished  on  the  requisitions  of 
Congress,  made  previously  to  Oct.  1781,  and  to  forward  the 
same  to  the  office  of  the  comptroller  of  the  treasury. 

That  it  shall  also  be  the  duty  of  the  said  commissioners  to 
receive  and  examine  all  the  claims  of  the  states  to  which 
they  are  appointed,  against  the  United  States  for  advances 
or  disbursements  by  them  made  for  the  use  of  the  late  com- 
missar}',  quarter  master,  cloathing,  marine  and  hospital  depart- 


256  VETOED    BILLS    AND    OTHER   DOCUMENTS.  [1787. 

ments,  or  under  any  other  description  whatsoever,  to  pass 
upon  all  such  as  are  authorized  by  the  resolves  of  Congress, 
and  supported  by  proper  vouchers,  so  far  as  it  respects  the 
evidence  offered  in  support  of  the  said  claims,  and  to  state 
such  as  are  not  thus  warranted  or  supported,  together  with 
such  remarks  as  may  explain  the  nature  of  these  accounts, 
and  the  reasons  offered  for  the  deficient'}*  of  vouchers. 

And  be  it  further  ordained  by  the  authority  aforesaid,  that 
on  all  the  accounts  aforesaid  interest  shall  be  allowed  at  the 
rate  of  six  per  cent,  per  annum,  agreeably  to  the  resolves  of 
Congress. 

[The  space  of  six  months  is  allowed  to  the  several  States  for  exhibit- 
ing their  claims  against  the  United  States,  and  within  twelve  months  the 
commissioners  are  to  deliver  all  accounts  and  vouchers  to  the  comptroller 
of  the  Treasury.  A  board  of  three  commissioners  is  to  be  appointed  by 
Congress,  to  receive  all  the  accounts  and  claims  of  the  several  States, 
and  to  examine  such  accounts  as  have  been  passed  by  the  district  com- 
missioners, in  order  that  the  same  may  be  finally  adjusted  on  uniform 
and  equitable  principles,  but  such  revision  is  not  to  affect  the  validity  of 
vouchers  admitted  by  the  district  commissioners.] 

And  be  it  further  ordained,  That  wherever  it  shall  appear 
to  the  said  board  of  commissioners,  that  advances  or  dis- 
bursements, paj'ments  or  supplies,  of  the  description  afore- 
said, have  been  made  by  any  of  the  states,  subsequent  to 
the  18th  of  April,  1775,  for  articles  or  services  for  the  use 
of  the  United  States,  That  the  said  commissioners  be,  and 
they  are  hereby  vested  with  full  power  and  authority  to  make 
such  allowance  for  the  same  as  they  shall  think  consistent 
with  the  principles  of  general  equity,  although  such  advances 
or  disbursements  may  riot  be  sanctioned  by. the  resolves  of 
Congress,  or  supported  by  regular  vouchers,  so  as  to  enable 
the  said  commissioners  to  make  a  final  adjustment  of  all  the 
accounts  subsisting  between  the  United  States  and  the  several 
members  thereof,  agreeably  to  such  quota  as  Congress  shall 
hereafter  determine. 

[The  decision  of  a  majority  of  the  commissioners  on  the  claims  sub- 
mitted is  to  be  final,  and  the  commission  is  to  continue  in  force  for  one 
year  and  a  half  from  the  time  of  entering  upon  their  office,  unless  sooner 
revoked  by  Congress. 


1815.]        BILL   FOR   A   BANK    OF   THE    UNITED    STATES.  257 

The  ordinance  of  October  13, 1786,  establishing  a  board  to  settle  all 
accounts  with  the  individual  States,  is  then  repealed.] 

[Journal  of  Congress,  1787,  p.  66.] 


The  United  States  Bank  bill  of  1815. 
[Printed  in  the  Journal  of  the  Senate,  January  31,  1815,  p.  315.] 

An  Act  to  incorporate  the  subscribers  to  the  Bank  of  the 
United  States  of  America. 

J3e  it  enacted,  ...  That  a  bank  of  the  United  States  of 
America  shall  be  established,  the  capital  stock  of  which  shall 
be  thirty  millions  of  dollars,  divided  into  three  hundred  thou- 
sand shares,  of  one  hundred  dollars  each  share  ;  and  that 
subscriptions  for  thirty  millions  of  dollars,  towards  consti- 
tuting the  said  capital  stock,  shall  be  opened  on  the  last 
Monday  of  February  next,  .  .  . 

[The  places  for  receiving  subscriptions  and  the  commissioners  who 
are  to  receive  the  same  are  then  named,  and  provision  is  made  for  the 
allotment  of  shares  if  the  subscriptions  exceed  the  proposed  capital,  and 
for  an  extension  of  time  for  receiving  subscriptions  if  they  fall  short.} 

SEC.  2.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  any  person,  .copartnership,  or  body  politic,  to  subscribe 
for  so  many  shares  of  the  said  capital  stock  of  the  said  bank, 
as  he,  she,  or  they,  shall  think  fit,  not  exceeding  three  thou- 
sand shares,  except  as  is  hereinafter  provided  for  the  sub- 
scription on  behalf  of  the  United  States,  and  the  sums 
respectively  subscribed,  except  on  behalf  of  the  United 
States,  as  is  hereinafter  provided,  shall  be  paj-able  in  the 
manner  following,  that  is  to  say  :  five  millions  of  dollars 
thereof  in  gold  or  silver  coin  of  the  United  States,  or  of  for- 
eign coin  at  the  value  heretofore  established  by  the  act  of 
congress,  entitled  u  An  act  regulating  the  currency  of  for- 
eign coins,"  passed  the  tenth  of  April,  one  thousand  eight 
hundred  and  six ;  ten  millions  of  dollars  thereof  in  gold  or 
silver  coin  as  aforesaid,  or  in  the  public  debt  of  the  United 
States,  contracted  by  virtue  of  the  act  of  congress,  entitled 

17 


258  VETOED    BILLS    AND    OTHER   DOCUMENTS.  [1815. 

"An  act  authorizing  a  loan  for  a  sum  not  exceeding  eleven 
millions  of  dollars,"  passed  the  fourteenth  day  of  March,  one 
thousand  eight  hundred  and  twelve,  or  contracted,  or  to  be 
contracted  by  virtue  of  any  subsequent  act  and  acts  of  con- 
gress heretofore  passed,  authorizing  a  loan  or  loans ;  and 
fifteen  millions  of  dollars  thereof  in  gold  or  silver  coin,  or 
in  treasury  notes  issued  under  the  act  of  congress,  entitled 
"An  act  to  authorize  the  issuing  of  treasury  notes,"  passed 
the  thirtieth  day  of  June,  one  thousand  eight  hundred  and 
twelve,  or  issued  or  to  be  issued  under  the  authority  of  any 
subsequent  act  or  acts  of  congress,  authorizing  or  which 
shall  authorize  treasury  notes  to  be  issued,  previous!}-  to  the 
final  closing  of  the  subscriptions  to  the  said  bank.  .  .  . 

SEC.  3.  And  be  it  further  enacted,  That  the  United  States 
may,  at  any  time  before  the  expiration  of  this  act,  in  pursu- 
ance of  an}-  law  which  may  be  passed  by  congress  for  that 
purpose,  cause  to  be  subscribed,  for  the  use  of  the  United 
States,  to  said  bank,  fifty  thousand  additional  shares,  to  be 
paid  in  public  stock,  bearing  an  interest  of  four  per  cent,  per 
annum,  redeemable  in  any  sums,  and  at  any  periods,  which 
the  government  may  deem  fit. 

SEC.  4.  And  be  it  further  enacted,  That  whenever  and  as 
often  as  any  of  the  treasury  notes,  subscribed  as  aforesaid, 
to  the  said  capital  stock  of  the  said  bank,  shall  be  due  and 
payable,  it  shall  be  lawful  for  the  secretary  of  the  treasury 
(and  he  is  hereby  authorized  and  required)  to  pay  and  redeem 
the  same,  principal  and  interest,  by  causing  certificates  of 
public  stock  for  an  equal  amount,  bearing  an  interest  of  six 
per  cent,  per  annum,  and  redeemable  in  any  sums,  and  at 
any  periods,  which  the  government  may  deem  fit,  to  be  pre- 
pared and  made  in  the  usual  form,  and  the  same  to  be  de- 
livered to  the  president  and  directors  of  the  said  bank,  in 
satisfaction  and  discharge  of  such  treasury  notes. 

[Section  5,  making  the  subscribers  a  corporation  under  the  name  of 
"  The  President,  Directors,  and  Company,  of  the  Bank  of  the  United 
States,"  to  continue  until  March  3,  1835,  follows  the  phraseology  of  tlie 
act  of  February  25,  1791,  establishing  the  first  Bank  of  the  United 
States,  on  page  23,  but  limits  the  property  to  be  held  to  not  exceed- 


1815.]        BILL   FOB   A   BANK   OF   THE    UNITED    STATES.  259 

ing  thirty-five  millions  of  dollars,  including  the  amount  of  the  capital 
stock.] 

SEC.  C.  And  be  it  further  enacted,  That,  for  the  man- 
agement of  the  affairs  of  the  said  corporation,  there  shall  be 
twenty-five  directors,  who  shall  be  elected  at  the  banking 
house  in  Philadelphia,  on  the  first  Monday  of  January,  in 
each  year,  by  the  stockholders  or  proprietors  of  the  capital 
stock  of  the  said  corporation,  and  by  a  plurality  of  votes 
then  and  there  actually  given,  according  to  the  scale  of 
voting  hereinafter  prescribed.  And  the  directors,  so  duly 
chosen,  shall  be  capable  of  serving  by  virtue  of  such  choice, 
until  the  end  or  expiration  of  the  first  Monday  in  January 
next  ensuing  the  time  of  such  election,  and  no  longer :  Pro- 
vided always,  That  the  first  election  and  appointment  of 
directors  shall  be  at  the  time,  and  for  the  period,  hereinafter 
declared. 

[Section  7  requires  that,  as  soon  as  twelve  millions  of  dollars,  in  gold 
and  silver  coin  and  in  public  debt  and  treasury  notes,  shall  have  been 
received  on  account  of  the  subscription  to  stock,  exclusive  of  the  sub- 
scription by  the  United  States,  a  time  shall  be  fixed  for  the  election  of 
directors,  the  directors  then  elected  to  elect  one  of  their  number  as 
president,  and  the  operations  of  the  bank  then  to  begin  at  the  city  of 
Philadelphia. 

Section  8  empowers  the  directors  to  appoint  and  pay  the  neces- 
sary officers,  clerks,  and  servants,  and  to  govern  the  affairs  of  the 
corporation.] 

SEC.  9.  And  be  it  further  enacted,.  That  the  following  rules, 
restrictions,  limitations,  and  provisions,  shall  form  and  be  fun- 
damental articles  of  the  constitution  of  the  said  corporation, 
to  wit : 

[Article  1,  prescribing  the  method  of  voting  by  stockholders  and  for- 
bidding any  but  stockholders  actually  resident  in  the  United  States  to 
vote  by  proxy,  is  identical  with  article  I.  of  section  7  of  the  act  of  Febru- 
ary 25,  1791,  on  page  24.] 

2.  Not  more  than  three  fourths  of  the  directors  in  office,  at 
the  time  of  an  annual  election,  shall  be  elected  for  the  next 
succeeding  year,  and  no  person  shall  be  a  director  more  than 
three  out  of  four  years ;  but  the  director  who  shall  be  the 
president  at  the  time  of  an  election,  may  always  be  re-elected. 


260  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1815. 

3.  None  but  a  resident  citizen  of  the  United  States,  and 
holding  at  the  time  of  his  election  not  less  than  ten  shares, 
bona  fide  in  his  own  right,  shall  be  a  director ;  and  if  any  di- 
rector shall  cease  to  be  a  stockholder  to  that  amount,  he  shall 
cease  to  be  a  director. 

4.  No  director  shall  be  entitled  to  any  emolument.     The 
stockholders  may  make  such  compensation  to  the  president, 
for  his  extraordinary  attendance  at  the  bank,  as  shall  appear 
to  them  reasonable. 

5.  Not  less  than  seven  directors  shall  constitute  a  board 
for  the  transaction  of  business,  of  whom  the  president  shall 
always  be  one,  except  in  case  of  sickness  or  necessary  ab- 
sence, in  which  case  his  place  may  be  supplied  by  any  other 
director  whom  he,  by  writing  under  his  hand,  shall  depute 
for  the  purpose.     And  the  director  so  deputed,  may  do  and 
transact  all  the  necessary  business  belonging  to  the  office  of 
the  president  of  the  said  corporation,  during  the  continuance 
of  the  sickness  or  necessary  absence  of  the  president. 

6.  A  number  of  stockholders,  not  less  than  sixty,  who, 
together,  shall  be  proprietors  of  one  thousand  shares  or  up- 
wards, shall  have  power  at  airy  time  to  call  a  general  meeting 
of  the  stockholders,  for  purposes  relative  to  the  institution, 
giving  at  least  ten  weeks'  notice  in  two  public  newspapers  of 
the  place  where  the  bank  is  seated,  and  specifying  in  such 
notice  the  object  or  objects  of  such  meeting. 

[Articles  7,  8,  and  9,  requiring  bonds  from  every  cashier,  limiting  the 
lands  to  be  held  by  the  corporation,  prescribing  a  limit  for  the  total 
amount  of  its  debts,  and  fixing  the  liability  of  the  directors  in  case  of  ex- 
cess beyond  that  limit,  are  the  same  as  articles  VII.,  VIII.,  and  IX.  of 
section  7  of  the  act  of  1791,  on  page  25,  except  that  the  limit  of  debts  is 
fixed  at  thirty  millions  of  dollars.] 

10.  The  said  corporation  shall  not  directly  or  indirectly 
deal  or  trade  in  anything  except  bills  of  exchange,  gold  or 
silver  bullion,  or  in  the  sale  of  goods  really  and  truly  pledged 
for  mone}*  lent,  and  not  redeemed  in  due  time,  or  goods  which 
shall  be  the  proceeds  of  its  lands.  It  shall  not  be  at  liberty 
to  purchase  any  public  debt  whatsoever ;  nor  shall  it  take 
more  than  at  the  rate  of  six  per  cent,  per  annum,  for  or  upon 
its  loans  or  discounts. 


1815.]         BILL   FOB   A   BANK   OF   THE   UNITED    STATES.  261 

11.  The  said  corporation  shall  not,  in  any  one  year,  sell 
any  portion  of  the  public  debt  constituting  a  part  of  its  capi- 
tal stock  aforesaid,  to  an  amount  exceeding  five  millions  of 
dollars,  without  the  consent  of  Congress. 

12.  No  loan  shall  be  made  by  the  said  corporation,  for  the 
use,  or  on  account,  of  the  government  of  the  United  States,  to 
an  amount  exceeding  five  hundred  thousand  dollars  ;  or  of  anv 
particular  state,  to  an  amount  exceeding  fifty  thousand  dol- 
lars ;   or  to  any  foreign  prince  or  state,   unless  previously 
authorized  by  a  law  of  the  United  States. 

[Articles  13  and  14,  providing  for  the  transfer  of  shares  in  the  corpora- 
tion and  for  the  assignment  and  negotiation  of  its  bills  and  notes,  follow 
closely  the  phraseology  of  articles  XII.  and  XIII.  of  section  7  of  the  act 
of  1791,  on  page  26.J 

15.  Half  yearly  dividends  shall  be  made  of  so  much  of  the 
profits  of  the  bank  as  shall  appear  to  the  directors  advisable ; 
and  once  in  every  three  years,  the  directors  shall  la}'  before 
the  stockholders,  at  a  general  meeting,  for  their  information, 
an  exact  and  particular  statement  of  the  debts  which  shall 
have  remained  unpaid  after  the  expiration  of  the  original 
credit,  for  a  period  of. treble  the  term  of  that  credit,  and  of 
the  surplus  of  profits,  if  any,  after  deducting  losses  and  divi- 
dends.    If  there  shall  be  a  failure  in  the  payment  of  any  part 
of  any  sum  subscribed  by  any  person,  copartnership,  or  body 
politic,  the  party  failing  shall  lose  the  benefit  of  aiv^  dividend 
which  may  have  accrued  prior  to  the  time  for  making  such 
payment,  and  during  the  delay  of  the  same. 

16.  The  directors  of  said  corporation  shall  be  bound  to 
establish  a  competent  office  of  discount  and  deposite  in  the 
District  of  Columbia,  whenever  any  law  of  the  United  States 
shall  require  such  establishment ;  and  it  shall  be  lawful  for 
the  said  directors  to  establish  offices  wheresoever  they  shall 
think  fit,  within  the  United  States,  or  the  territories  thereof, 
for  the  purposes  of  discount,  deposite,  arid  distribution,  or  for 
the  purposes  of  deposite  and  distribution  only  ;  and  upon  the 
same  terms,  and  in  the  same  manner,  as  shall  be  practised  at 
the  bank  ;  and  to  commit  the  management  of  the  said  offices, 
and  the  business  thereof  respectively,  to  such  persons,  and 


262  VETOED    BILLS    AND    OTHER    DOCUMENTS.  [1815. 

under  such  regulations,  as  they  shall  deem  proper,  not  being 
contrary  to  law  or  to  the  constitution  of  the  bank.  Or,  in- 
stead of  establishing  such  offices,  it  shall  be  lawful  for  the  di- 
rectors of  the  said  corporation,  from  time  to  time,  to  employ 
any  other  bank  or  banks,  at  any  place  or  places,  that  they  may 
deem  safe  and  proper,  to  manage  and  transact  the  business 
proposed  as  aforesaid,  to  be  managed  and  transacted  by  such 
offices,  under  such  agreements,  and  subject  to  such  regula- 
tions, as  the}'  shall  deem  just  and  proper.  But  the  managers 
or  directors  of  every  office  of  discount,  deposite,  and  distribu- 
tion, established  as  aforesaid,  shall  be  annually  appointed  by 
the  directors  of  the  bank,  to  serve  one  year ;  each  of  them 
shall  be  a  citizen  of  the  United  States ;  and  shall  hold,  at  the 
time  of  his  appointment,  not  less  than  five  shares  in  the  said 
bank,  bona  fide  in  his  own  right ;  and,  if  he  shall  cease  to  be 
a  stockholder  to  that  amount,  he  shall  cease  to  be  a  manager 
or  director  of  such  office  of  discount,  deposite,  and  distribu- 
tion ;  and  not  more  than  three-fourths  of  the  said  managers 
or  directors  in  office  at  the  time  of  an  annual  appointment, 
shall  be  reappointed  for  the  next  succeeding  year ;  nor  shall 
any  person  be  a  manager  or  director  for  more  than  three  out 
of  four  years  ;  but  the  president  ma}-  be  always  reappointed. 
17.  The  said  corporation,  all  offices  of  discount,  deposite, 
and  distribution,  and  of  deposite  and  distribution  only,  which 
shall  be  established  by  the  said  directors  as  aforesaid,  and  all 
banks  by  the  said  directors  employed  in  lieu  of  such  offices  as 
aforesaid,  shall  be  bound  to  receive  upon  deposite,  the  trea- 
sury notes  of  the  United  States  which  have  been,  or  may  be 
hereafter  issued  by  virtue  of  any  law  or  laws  of  the  United 
States ;  but  it  shall  be  optional  with  the  said  corporation  to 
pay  and  discharge  the  checks  or  drafts  of  the  persons  making 
such  deposite,  in  treasury  notes,  for  the  amount  thereof, 
either  in  gold  or  silver  coin,  or  in  the  notes  of  the  bank,  or 
in  treasury  notes.  And  all  banks  by  the  said  directors  em- 
ployed as  aforesaid,  in  lieu  of  the  offices  aforesaid,  shall  be 
further  bound  to  receive  on  deposite,  and  to  circulate  the 
notes  of  the  said  corporation,  on  the  same  terms,  and  in  the 
same  manner,  as  the  notes  of  the  said  banks  respectively 


1815.]        BILL    FOE   A   BANK   OF   THE    UNITED    STATES.  2G3 

are  received  and  circulated,  and  from  time  to  time  issue  and 
exchange  for  the  said  notes  of  the  said  corporation,  other 
notes  of  the  said  corporation,  or  the  notes  of 'the  said  banks 
respectively,  or  treasury  notes,  at  the  option  of  the  persons 
applying  for  such  issue  or  exchange.  The  said  corporation 
shall,  at  all  times,  distribute  among  the  offices  of  discount, 
deposite,  and  distribution,  and  of  deposite  and  distribution 
only,  and  at  all  the  banks  employed  in  lieu  of  such  offices  as 
aforesaid,  a  sufficient  sum,  in  the  various  denominations  of 
the  notes  of  the  said  corporation,  and  in  the  treasury  notes 
which  it  ma}*  receive  upon  deposite  from  the  government,  to 
answer  the  demand  therefor,  and  to  establish  a  sufficient  cir- 
culating medium  throughout  the  United  States  and  the  terri- 
tories thereof. 

[Article  18,  providing  for  statements  of  the  condition  of  the  bank  to 
be  made  to  the  Treasury  Department,  is  identical  with  article  XVI.  of 
section  7  of  the  act  of  1791,  on  page  27. 

Sections  10  and  11,  providing  for  the  punishment  of  unlawful  dealings 
in  merchandise  and  unlawful  loans,  contrary  to  articles  10  and  12  of  sec- 
tion 9,  follow  the  language  of  sections  8  and  9  of  the  act  of  1791,  on 
page  28.] 

SEC.  12.  And  be  it  further  enacted,  That  the  bills  or  notes 
of  the  said  corporation,  originallj-  made  payable,  or  which 
shall  have  become  payable,  on  demand,  shall  be  receivable  in 
all  paj-ments  to  the  United  States,  until  otherwise  directed 
by  act  of  congress. 

SEC.  13.  And  be  it  further  enacted.  That,  if  the  subscrip- 
tions and  payments  to  the  said  bank  shall  not  be  made  and 
completed,  so  as  to  enable  the  same  to  commence  its  opera- 
tions, or  if  the  said  bank  shall  not  commence  its  operations 
on  or  before  the  first  da}T  of  March,  one  thousand  eight  hun- 
dred and  sixteen,  then,  and  in  that  case,  this  act  shall  be  null 
and  void. 

[Section  14  providing  for  the  examination  of  the  proceedings  of  the 
Corporation  at  any  time  by  a  committee  of  either  House  of  Congress,  and 
for  a  scire  facias  and  forfeiture  of  the  charter  in  case  of  any  violation  of 
the  same,  is  identical  with  section  23  of  the  act  of  April  10, 1816,  estab- 
lishing the  second  Bank  of  the  United  States,  on  page  93.] 

SEC.  15.   And  be  it  farther  enacted,  That,  during  the  con- 


264  VETOED    BILLS    AND    OTHER   DOCUMENTS.  [1817. 

tinuance  of  this  act,  and  whenever  required  by  the  secretary 
of  the  treasury,  the  said  corporation  shall  do  and  perform 
the  several  and  respective  duties  of  the  commissioners  of 
loans  for  the  several  states,  or  of  an}'  one  or  more  of  them, 
at  the  times,  in  the  manner,  and  upon  the  terms,  to  be  pre- 
scribed b}-  the  secretary  of  the  treasury. 

SEC.  16.  And  be  it  further  enacted,  That  no  other  bank 
shall  be  established  by  any  future  law  of  the  United  States, 
during  the  continuance  of  the  corporation  hereby  created ; 
for  which  the  faith  of  the  United  States  is  hereby  pledged : 
Provided,  Congress  ma}'  renew  existing  charters  for  banks  in 
the  District  of  Columbia,  not  increasing  tho  capital  thereof; 
and  may  grant  charters,  if  they  deem  it  expedient,  to  any 
banking  associations  now  in  operation,  in  the  said  dis- 
trict, and  renew  the  same,  not  increasing  the  capital  thereof. 
And  notwithstanding  the  expiration  of  the  term  for  which 
the  said  corporation  is  created,  it  shall  be  lawful  to  use  the 
corporate  name,  style,  and  capacity,  for  the  purposes  of  suits, 
for  the  final  settlement  and  liquidation  of  the  affairs  and  ac- 
counts of  the  corporation,  and  for  the  sale  and  disposition  of 
their  estate,  real,  personal,  and  mixed,  but  not  for  any  other 
purpose,  or  in  any  other  manner  whatsoever  ;  nor  for  a  period 
exceeding  two  }-ears,  after  the  expiration  of  the  said  term  of 
incorporation. 

NOTE.  —  The  above  bill  was  returned  to  the  Senate,  where  it  origi- 
nated, by  the  President  of  the  United  States  with  his  objections,  Janu- 
ary 30,  1815,  and  then  failing  to  receive  the  votes  of  two  thirds  of  that 
house,  did  not  become  a  law. 


The  Agreement  for  Resumption  of  Specie  Payments,  1817. 

[Printed  in  State  Papers  on  Finance,  iv.  769.] 

Propositions  respectfully  submitted  to  the  convention  of  State 
banks  by  the  committee  on  the  part  of  the  Bank  of  the 
United  States : 

1.   That  the  incorporated  banks  of  New  York,  Philadel- 
phia, Baltimore,  and  Richmond,  engage,  on  the  20th  instant, 


1817.]  AGREEMENT   FOR   SPECIE   RESUMPTION.  265 

to  commence,  and  thenceforth  to  continue,  specie  payments 
for  all  demands  upon  them. 

2.  That  in  the  liquidation  of  the  balances  which  may  be 
due  by  the  receiving  banks,  the  Bank  of  the  United  States 
will  credit  those  banks,  respectively,  with  the  amount  of  their 
checks  upon  banks  which  may  be  parties  to  this  agreement. 

3.  That  the  whole  of  the  public  balances  in  the  receiving 
banks  in  New  York,  Philadelphia,  Baltimore,  and  Virginia, 
be  transferred  to  the  Bank  of  the  United  States  on  the  20th 
of  this  month,  and  retained  by  the  said  bank  until  the  1st  of 
July  next,  when  the  same  shall  be  paid  off,  together  with  the 
interest  thereon. 

4.  The  payment  of  the  balances  which  may  accumulate 
against  the  aforesaid  banks  subsequently  to  the  transfer  of 
the  balances  first  mentioned  shall  not  be  demanded  by  the 
Bank   of  the   United    States   until   the   said  bank   and  its 
branches  shall  have  discounted  for  individuals  (other  than 
those  having  duties  to  pay)  subsequently  to  the  19th  instant 
the  following  sums,  to  wit:  For  those  in  New  York,  two 
millions  ;  for  those  in  Philadelphia,  two  millions ;  for  those 
in  Baltimore,  one  and  a  half  million ;  for  those  in  Virginia, 
five  hundred  thousand  dollars ;   provided,   that  if  the  said 
bank  shall  be  willing  to  discount,  and  shall  not  have  the  re- 
quired amount  of  good  paper  offered  within  the  term  of  sixty 
days  from  the  20th  instant  at  New  York,  Philadelphia,  and 
Baltimore,  and  within  the  same  term  after  the  operation'  of 
the  offices  of  the   said   bank   in  Virginia  shall  have  com- 
menced, the  aforesaid  banks  shall,  at  the  expiration  of  that 
time,  at  the  aforesaid  places,  respectively,  pay  to  the  Bank  of 
the  United  States  the  balance  due  by  them  respectively. 

5.  That  the  Bank  of  the  United   States  will  engage  to 
discount  the  required  amount  at  the  respective  places,  and 
within  the  time  mentioned  in  the  preceding  articles,  provided 
good  paper  to  that  amount  shall  be  offered. 

6.  That  in  the  event  of  the  Bank  of  the  United  States  and 
its  branches  not  having  a  sufficient  amount  of  good  paper 
offered  at  the  respective  places  mentioned  in  the  fourth  article 
within  the  period  therein  stipulated,  then  the  Bank  of  the 


266  VETOED   BILLS   AND    OTHER   DOCUMENTS.  [1832. 

United  States  will  engage  to  discount  for  the  said  banks  the 
amount  of  the  deficiency  at  the  respective  places,  according 
to  the  amount  of  the  capitals  of  the  said  banks  respectively. 

7.  That  the  aforesaid  banks  shall  exchange  with  the  Bank 
of  the  United  States  and  its  branches,  from  day  to  day,  all 
such  notes  of  either  as  the  said  banks  may  receive ;  and  an 
interest  account  from  the  20th  instant  to  the  1st  of  July  shall 
be  liquidated  and  settled  in  the  usual  manner. 

8.  That  the  Bank  of  the  United  States,  and  the  incorporated 
banks  of  New  York,  Philadelphia,  Baltimore,  and  Virginia, 
will  interchange  pledges  of  good  faith  and  friendly  offices,  and 
upon  any  emergency  which  may  menace  the  credit  of  any  of 
the  aforesaid  banks  or  the  branches  of  the  United  States  Bank, 
will  cheerfully  contribute  their  resources  to  any  reasonable 
extent  in  support  thereof — the  Bank  of  the  United  States 
confiding  in  the  justice  and  discretion  of  the  State  banks,  re- 
spectively, to  circumscribe  their  affairs  within  the  just  limits 
indicated  by  their  respective  capitals  as  soon  as  the  interest 
and  convenience  of  the  community  will  admit. 

9.  That  upon  the  mutual  agreement  of  the  parties  to  these 
stipulations,  the  same  shall  be  submitted  to  the  Secretary  of 
the  Treasury  for  his  decision  upon  those  points  which  involve 
the  public  balances,  and  when  approved  by  him  shall  be  obli- 
gator}T  upon  all  the  contracting  parties. 

Bank  of  the  United  States,  February  1,  1817. 


The  United  States  Bank  Bill  of  1832. 

[Printed  in  the  Journal  of  the  Senate,  July  II,  1832,  page  451.] 

An  act  to  modify  and  continue  the  act  entitled  "An  act  to 
incorporate  the  subscribers  to  the  Bank  of  the  United 
States" 

Be  it  enacted,  .  .  .  That  the  act  entitled  "An  act  to  in- 
corporate the  subscribers  to  the  Bank  of  the  United  States," 
approved  on  the  tenth  da}T  of  April,  in  the  year  one  thousand 
eight  hundred  and  sixteen,  shall  continue  in  full  force  and 
effect  for  the  term  of  fifteen  years  from  and  after  the  period 


.1832.]  BILL    TO    RENEW   THE    BANK    CHARTER.  267 

therein  limited  for  its  expiration,  to  wit,  the  third  day  of 
March,  in  the  year  one  thousand  eight  hundred  and  thirty- 
six  ;  and  that  all  the  rights,  interests,  properties,  powers  and 
privileges,  secured  by  the  said  act,  with  all  the  rules,  condi- 
tions, restrictions,  and  duties,  therein  prescribed  and  imposed, 
be  and  remain  after  the  said  third  da}*  of  March,  in  the  year 
one  thousand  eight  hundred  and  thirty-six,  during  the  said 
fifteen  years,  as  if  the  said  limitation  in  the  said  act  had  not 
been  made ;  subject,  nevertheless,  to  the  modifications  and 
changes  hereinafter  expressed. 

SEC.  2.  And  be  it  further  enacted,  That  the  directors  of 
the  said  corporation  shall  have  power  to  appoint  two  or  more 
officers,  with  authority  to  sign  and  countersign  any  or  all  the 
notes  thereof,  the  denomination  of  each  of  which  shall  be  less 
than  one  hundred  dollars ;  which  notes,  when  signed  and 
countersigned  by  the  said  officers,  respectively,  shall,  to  all 
intents  and  purposes,  be  binding  and  obligator}'  upon  the  said 
corporation  as  if  the  same  had  been  signed  by  the  President, 
and  countersigned  by  the  principal  Cashier  or  Treasurer 
thereof ;  and  it  shall  be  the  duty  of  the  directors  of  the  said 
corporation  to  make  known,  in  writing,  and  as  soon  as  may 
be,  to  the  Secretary  of  the  Treasury,  the  names  of  the  officers 
who  shall  be  appointed  by  virtue  of  this  provision  :  Provided, 
That  from  and  after  the  third  day  of  March,  one  thousand 
eight  hundred  and  thirty-six,  no  branch  bank  draft,  or  other 
bank  paper  not  payable  at  the  place  where  issued,  shall  be 
put  in  circulation,  as  currency,  by  the  bank,  or  an}-  of  its 
offices,  except  notes  of  the  denomination  of  fifty  dollars,  or 
of  some  greater  sum. 

SEC.  3.  And  be  it  further  enacted,  That  it  shall  not  be  law- 
ful for  the  said  corporation  to  issue,  pa}-  out,  or  put  in  circu- 
lation, any  note  or  notes  of  a  denomination  less  than  fifty 
dollars,  which  shall  not,  upon  the  faces  thereof,  respectively, 
be  payable  at  the  bank  or  office  of  discount  and  deposite, 
whence  they  shall  be  issued,  paid  out,  or  put  in  circulation. 

SEC.  4.  And  be  it  further  enacted,  That  the  notes  or  bills 
of  the  said  corporation,  although  the  same  be,  upon  the  faces 
thereof,  respectively,  made  payable  at  one  place  only,  shall, 


268  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1832. 

nevertheless,  be  received  by  the  said  corporation  at  the  bank, 
or  at  any  of  the  offices  of  discount  and  deposite  thereof,  if 
tendered  in  liquidation  or  payment  of  any  balance  or  balances 
due  to  said  corporation,  or  to  such  office  of  discount  and  de- 
posite, from  any  other  incorporated  bank. 

SEC.  5.  And  be  it  further  enacted,  That  it  shall  not  be 
lawful,  after  the  said  third  day  of  March,  in  the  j'ear  one 
thousand  eight  hundred  and  thirty-six,  for  the  said  corpora- 
tion to  hold,  keep,  and  retain,  for  a  period  exceeding  five 
years  after  the  date  of  acquiring  the  same,  an}-  right,  title,  or 
interest,  except  by  way  of  mortgage  or  judgment  lien  in  se- 
curity of  debts,  to  any  lands,  tenements,  and  hereditaments, 
other  than  those  requisite  for  its  accommodation  in  relation 
to  the  convenient  transacting  of  its  business  ;  and  it  shall  be 
the  duty  of  said  corporation,  within  the  aforesaid  period  of 
five  years,  to  sell,  dispose  of,  or  otherwise  bona  fide  divest 
itself  of  all  right,  title,  and  interest  to  any  lands,  tenements, 
and  hereditaments,  conveyed  to  it  in  satisfaction  of  debts 
previously  contracted  in  the  course  of  its  dealings,  or  pur- 
chased at  sales  upon  judgments  which  shall  have  been  ob- 
tained for  such  debts  ;  and  for  an}'  and  every  violation  of  this 
provision,  the  said  corporation  shall  be  subject  to  a  penalty 
of  ten  thousand  dollars,  to  be  recovered  in  the  name  of  the 
United  States  of  America  by  a  qui-tam  action  of  debt  insti- 
tuted in  any  court  of  the  United  States  having  jurisdiction  of 
the  same  ;  one  half  of  which  shall  enure  to  the  benefit  of  the 
informer,  and  the  other  half  to  the  use  of  the  United  States. 

SEC.  6.  And  be  it  further  enacted,  That  from  and  after  the 
said  tenth  da}7  of  April,  in  the  year  one  thousand  eight  hun- 
dred and  thirty-six,  it  shall  not  be  lawful  for  the  directors  of 
the  said  corporation  to  have,  establish,  or  retain,  more  than 
two  offices  of  discount  and  deposite  in  an}-  State.  Provided, 
That  nothing  herein  contained  shall  prevent  the  said  corpo- 
ration from  retaining  any  of  the  branches  which  are  now 
established. 

SEC.  7.  And  be  it  further  enacted,  That,  in  consideration 
of  the  exclusive  benefits  and  privileges  continued  by  this  act 
to  the  said  corporation  for  fifteen  years  as  aforesaid,  the  said 


1832.]  BILL   TO   RENEW   THE   BANK   CHARTER.  269 

corporation  shall  pay  to  the  United  States  the  annuity,  or 
3'early  sum  of  two  hundred  thousand  dollars ;  which  said  sum 
shall  be  paid  on  the  fourth  day  of  March  in  each  and  every 
year  during  the  said  term  of  fifteen  years. 

SEC.  8.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  Congress  to  provide,  by  law,  that  the  said  bank  shall  be 
restrained,  at  any  time  after  the  third  day  of  March,  in  the 
year  one  thousand  eight  hundred  and  thirty-six,  from  making, 
issuing,  or  keeping  in  circulation,  an}'  notes  or  bills  of  said 
bank,  or  an}*  of  its  offices,  of  a  less  sum  or  denomination  than 
twenty  dollars. 

SEC.  9.  And  be  it  further  enacted,  That  the  Cashier  of  the 
bank  shall,  annually,  report  to  the  Secretary  of  the  Treasury 
the  names  of  all  stockholders  who  are  not  resident  citizens  of 
the  United  States ;  and,  on  application  of  the  Treasurer  of 
any  State,  shall  make  out  and  transmit  to  such  Treasurer  a  list 
of  stockholders  residing  in,  or  citizens  of,  such  State,  with 
the  amount  of  stock  owned  by  each. 

SEC.  10.  And  be  it  further  enacted,  That  so  much  of  any 
act  or  acts  of  Congress  heretofore  passed,  and  now  in  force, 
supplementary  to,  or  in  any  wise  connected  with,  the  said 
original  act  of  incorporation,  approved  on  the  tenth  day  of 
April,  in  the  year  one  thousand  eight  hundred  and  sixteen,  as 
is  not  inconsistent  with  this  act,  shall  be  continued  in  full 
force  and  effect  during  the  said  fifteen  }-ears  after  the  said 
third  day  of  March,  in  the  year  one  thousand  eight  hundred 
and  thirt}r-six. 

SEC.  11.  And  be  it  further  enacted,  That  it  shall  be  the 
dut}T  of  the  President  and  directors  of  the  said  Bank,  on  or 
before  the  first  day  of  the  next  session  of  Congress,  to  signify 
to  the  President  of  the  United  States  their  acceptance,  on  be- 
half of  the  Bank  of  the  United  States,  of  the  terms  and  con- 
ditions in  this  act  contained ;  and  if  they  shall  fail  to  do  so 
on  or  before  the  day  above  mentioned,  that  then  this  act  shall 
cease  to  be  in  force. 

NOTE.  —  Senate  bill  No.  147  of  1831-32  was  returned  to  the  Senate  by 
the  President  of  the  United  States  with  his  objections,  July  10,  1832,  and 
failing  to  obtain  the  votes  of  two  thirds  of  that  house,  did  not  become  a 
law. 


270  VETOED   BILLS   AND    OTHER   DOCUMENTS.  [1836. 

The  Specie  Circular  of  1836. 
[Printed  in  Senate  Documents,  1836-37,  No.  2,  p.  96.] 

Circular  to  Receivers  of  Public  Money,  and  to  the  Deposite 

Banks. 

TREASURY  DEPARTMENT,  July  11,  1836. 

In  consequence  of  complaints  which  have  been  made  of 
frauds,  speculations,  and  monopolies,  in  the  purchase  of  the 
public  lands,  and  the  aid  which  is  said  to  be  given  to  effect 
these  objects  by  excessive  bank  credits,  and  dangerous  if  not 
partial  facilities  through  bank  drafts  and  bank  deposites,  and 
the  general  evil  influence  likely  to  result  to  the  public  interests, 
and  especially  the  safety  of  the  great  amount  of  money  in 
the  Treasury,  and  the  sound  condition  of  the  currency  of  the 
country,  from  the  further  exchange  of  the  national  domain  in 
this  manner,  and  chiefly  for  bank  credits  and  paper  monej-, 
the  President  of  the  United  States  has  given  directions,  and 
you  are  hereby  instructed,  after  the  15th  day  of  August  next, 
to  receive  in  payment  of  the  public  lands  nothing  except 
what  is  directed  by  the  existing  laws,  viz :  gold  and  silver, 
and  in  the  proper  cases,  Virginia  land  scrip ;  provided  that 
till  the  15th  of  December  next,  the  same  indulgences  here- 
tofore extended  as  to  the  kind  of  money  received,  ma}'  be 
continued  for  any  quantity  of  land  not  exceeding  320  acres 
to  each  purchaser  who  is  an  actual  settler  or  bona  fide  resi- 
dent in  the  State  where  the  sales  are  made. 

In  order  to  ensure  the  faithful  execution  of  these  instruc- 
tions, all  receivers  are  strictly  prohibited  from  accepting  for 
land  sold,  any  draft,  certificate,  or  other  evidence  of  money, 
or  deposite,  though  for  specie,  unless  signed  by  the  Treasurer 
of  the  United  States,  in  conformity  to  the  act  of  April  24, 
1820.  And  each  of  those  officers  is  required  to  annex  to  his 
monthly  returns  to  this  Department,  the  amount  of  gold,  and 
of  silver,  respectively,  as  well  as  the  bills  received  under  the 
foregoing  exception ;  and  each  deposite  bank  is  required  to 
annex  to  every  certificate  given  upon  a  deposite  of  money, 
the  proportions  of  it  actually  paid  in  gold,  in  silver,  and  in 


1837.]  BILL   TO   RESCIND   THE   SPECIE    CIRCULAR.  271 

bank  notes.  All  former  instructions  on  these  subjects,  except 
as  now  modified,  will  be  considered  as  remaining  in  full  force. 
The  principal  objects  of  the  President  in  adopting  this 
measure  being  to  repress  alleged  frauds,  and  to  withhold  any 
countenance  or  facilities  in  the  power  of  the  Government 
from  the  monopoly  of  the  public  lands  in  the  hands  of  specu- 
lators and  capitalists,  to  the  injury  of  the  actual  settlers  in 
the  new  States,  and  of  emigrants  in  search  of  new  homes,  as 
well  as  to  discourage  the  ruinous  extension  of  bank  issues, 
and  bank  credits,  by  which  those  results  are  generally  sup- 
posed to  be  promoted,  }"our  utmost  vigilance  is  required,  and 
relied  on,  to  carry  this  order  into  complete  execution. 

LEVI  WooDBURr, 

Secretary  of  the  Treasury. 


The  bill  to  rescind  the  Specie  Circular. 

[Printed  in  Senate  Miscellaneous  Documents,  1886-87,  No.  53,  page  157.] 

An  act  designating  and  limiting  the  funds  receivable  for  the 
revenues  of  the  United  States. 

JBe  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  be, 
and  hereb}-  is,  required  to  adopt  such  measures  as  he  may 
deem  necessary  to  effect  a  collection  of  the  public  revenue  of 
the  United  States,  whether  arising  from  duties,  taxes,  debts, 
or  sales  of  lands,  in  the  manner  and  on  the  principles  herein 
provided ;  that  is,  that  no  such  duties,  taxes,  debts,  or  sums 
of  money,  payable  for  lands,  shall  be  collected  or  received 
otherwise  than  in  the  legal  currency  of  the  United  States,  or 
in  notes  of  banks  which  are  payable  and  paid  on  demand  in 
the  said  legal  currency  of  the  United  States,  under  the  follow- 
ing restrictions  and  conditions  in  regard  to  such  notes,  to 
wit :  from  and  after  the  passage  of  this  act,  the  notes  of  no 
bank  which  shall  issue  or  circulate  bills  or  notes  of  a  less  de- 
nomination than  five  dollars  shall  be  received  on  account  of  the 
public  dues  ;  and,  from  and  after  the  thirtieth  da3-  of  Decem- 
ber, eighteen  hundred  and  thirt^v-nine,  the  notes  of  no  bank 
which  shall  issue  or  circulate  bills  or  notes  of  a  less  denomi- 


272  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1837. 

nation  than  ten  dollars  shall  be  so  receivable  ;  and,  from  and 
after  the  thirtieth  da}'  of  December,  one  thousand  eight  hun- 
dred and  forty-one,  the  like  prohibition  shall  be  extended  to 
the  notes  of  all  banks  issuing  bills  or  notes  of  a  less  denomi- 
nation than  twenty  dollars. 

SEC.  2.  And  be  it  further  enacted,  That  no  notes  shall  be 
received  by  the  collectors  or  receivers  of  the  public  money 
which  the  banks  in  which  they  are  to  be  deposited,  shall  not, 
under  the  supervision  and  control  of  the  Secretary  of  the 
Treasury,  agree  to  pass  to  the  credit  of  the  United  States  as 
cash :  Provided,  That,  if  any  deposite  bank  shall  refuse  to 
receive  and  pass  to  the  credit  of  the  United  States,  as  cash, 
any  notes  receivable  under  the  provisions  of  this  act,  which 
said  bank,  in  the  ordinar}^  course  of  business,  receives  on  gen- 
eral deposite,  the  Secretary  of  the  Treasury  is  hereby  author- 
ized to  withdraw  the  public  deposites  from  said  bank. 

SEC.  3.  And  be  it  further  enacted,  That  this  act  shall  not 
be  so  construed  as  to  prohibit  receivers  or  collectors  of  the 
dues  of  the  Government  from  receiving  for  the  public  lands  any 
kind  of  land  scrip  or  Treasury  certificates  now  authorized  by 
law,  but  the  same  shall  hereafter  be  received  for  the  public 
lands,  in  the  same  way  and  manner  as  has  heretofore  been 
practised  ;  and  it  shall  not  be  lawful  for  the  Secretary  of  the 
Treasury  to  make  any  discrimination  in  the  funds  receivable 
between  the  different  branches  of  the  public  revenue,  except 
as  is  provided  in  this  section. 

NOTE.  —  Senate  bill  No. .144  of  1836-37,  having  been  passed  by  both 
houses  of  Congress,  was  presented  to  the  President  of  the  United  States 
for  his  approval,  March  2,  1837,  but,  not  having  been  acted  upon  by  him 
when  the  session  ended,  March  3,  did  not  become  a  law. 


The  Fiscal  Bank  bill  of  August,  1841. 

[Printed  in  the  Journal  of  the  Senate,  August  19,  1841,  page  178.] 

An  Act  to  incorporate  the  subscribers  to  the  Fiscal  Bank  of 

the  United  States. 

Be  it  enacted,  .  .  .  That  a  Fiscal  Bank  of  the  United 
States  shall  be  established  in  the  District  of  Columbia,  with 


1841.]  FISCAL    BANK    BILL    OF    1841.  273 

a  capital  of  thirty  millions  of  dollars,  divided  into  three  hun- 
dred thousand  shares,  of  one  hundred  dollars  each  share. 
One  hundred  thousand  shares  shall  be  subscribed  for  by  the 
United  States,  and  the  residue  of  the  said  capital  ma}-  be  sub- 
scribed and  paid  for  by  individuals,  companies,  corporations, 
or  States,  the  said  individuals  being  citizens  of  the  United 
States,  and  the  said  companies  and  corporations  being  of  the 
several  States,  or  of  these  United  States,  or  Territories  thereof, 
in  the  manner  hereinafter  specified.  But  Congress  reserves 
to  itself  the  power  of  augmenting  the  capital  of  the  said  bank, 
at  any  time  after  the  1st  of  January,  1851,  by  authorizing  the 
addition  thereto  of  a  sum  not  exceeding  twenty  millions  of 
dollars,  divided  into  shares  as  aforesaid,  which  may  be  sub- 
scribed for,  at  not  less  than  their  par  value,  by  the  United 
States,  or  by  any  State,  corporation,  company,  or  individuals, 
in  the  manner  directed  \)\  law :  Provided,  That  the  United 
States  shall  not  subscribe  for  more  than  one  third  of  the  said 
additional  capital. 

[Section  2  provides  for  the  appointment  of  commissioners  to  receive 
subscriptions,  and  for  the  time,  place,  and  manner  of  receiving,  and  gives 
directions  as  to  the  course  of  proceeding  in  case  the  amount  subscribed 
exceeds  or  falls  short  of  the  twenty  millions  to  be  raised.] 

SEC.  3.  And  be  it  further  enacted,  That  it  shall  be  lawful 
for  an}-  individual,  company,  corporation,  or  State,  when  the 
subscriptions  shall  be  opened  as  heretofore  directed,  to  sub- 
scribe for  any  number  of  shares  of  the  capital  of  the  said  bank, 
not  exceeding  two  thousand  five  hundred  shares  ;  and  that 
the  sums  so  subscribed  shall  be  payable  and  paid  in  bullion, 
in  gold  or  silver  coin  of  the  United  States,  or  in  foreign  coins, 
made  and  declared  current  in  the  United  States  by  the  act  of 
Congress  of  the  25th  of  June,  1834,  entitled,  "An  act  regu- 
lating the  value  of  certain  foreign  silver  coins  in  the  United 
States,"  and  by  the  act  of  the  28th  of  June,  1834,  entitled, 
"  An  act  regulating  the  value  of  certain  gold  coins  within  the 
United  States,"  at  the  following  rates,  to  wit : 

[The  section  then  prescribes  the  rates  for  a  large  number  of  foreign 
coins  respectively,  and  continues] 

.  . .  and  in  foreign  silver  coins  at  the  value  fixed  upon  them 

18 


274  VETOED    BILLS   AND   OTHER   DOCUMENTS.  [1841. 

severally  in  the  act  first  above  named,  or  in  Treasury  notes 
of  the  United  States,  or  in  certificates  of  stock  issued  under 
the  act  entitled,  "An  act  authorizing  a  loan  not  exceeding 
the  sum  of  twelve  millions  of  dollars,"  approved  July  21st, 
1841.  And  the  payments  made  in  Treasury  notes  or  in  the 
said  certificates  of  stock  shall  be  paid  and  received  at  the  par 
value  thereof,  including  all  interest  which  shall  have  accrued 
thereon  on  the  day  of  such  payment.  And  the  payments  of 
the  said  subscriptions  shall  be  made  and  completed  by  the 
subscribers,  respectively,  at  the  time  and  in  the  manner  fol- 
lowing, that  is  to  say :  at  the  time  of  subscribing  there  shall 
be  paid  ten  dollars  on  each  share  in  bullion,  in  gold  or  silver 
coin,  in  the  Treasury  notes  of  the  United  States,  or  in  the 
said  certificates  of  stock,  and  twentj'-five  dollars  more  in 
bullion,  in  coin,  Treasury  notes,  or  certificates  of  stock,  as 
aforesaid,  at  the  expiration  of  three  calendar  months  from  the 
first  Monday  in  September,  1841 ;  and  there  shall  be  paid  the 
further  sum  of  twent3'-five  dollars  on  each  share  in  bullion,  in 
gold  or  silver  coin,  Treasury  notes,  or  certificates  of  stock, 
as  aforesaid,  in  eight  calendar  months  from  the  first  Monday 
in  September,  1841  ;  and  forty  dollars  more  in  bullion,  in 
coin,  Treasmy  notes,  or  certificates  of  stock,  as  aforesaid,  at 
the  expiration  of  twelve  calendar  months  from  the  said  first 
Monday. 

[Section  4  provides  that  if,  in  consequence  of  an  excess  of  subscriptions 
and  the  allotment  of  shares  among  the  subscribers,  any  subscriber  shall 
have  made  a  larger  payment  than  was  necessary  at  the  time  of  subscrib- 
ing, the  surplus  shall  be  returned  to  him;  and  provision  is  made  for  the 
delivery  to  the  Fiscal  Bank  of  money  and  certificates  of  stock,  received 
from  the  subscribers  by  the  commissioners,  as  soon  as  shall  be  required 
after  the  organization  of  the  Bank.] 

SEC.  5.  And  be  it  further  enacted,  That  no  certificate  of 
stock,  or  any  subscription,  or  am"  right  thereto,  shall  be  trans- 
ferred except  by  operation  of  law,  until  after  the  whole 
amount  of  the  second  instalment  shall  have  been  full}*  paid, 
and  every  contract  or  agreement  made  or  entered  into  for  the 
transfer  of  such  stock,  or  for  the  holding  of  the  same  in 
trust  for  the  use  of  any  other  person,  except  the  person  in 


1841.]  FISCAL   BANK   BILL   OF    1841.  275 

whose  name  it  is  subscribed  in  the  books,  or  for  whose  use  it 
is  therein  expressed,  shall  be  wholly  and  absolutely  null  and 
void  in  law.  That  it  shall  be  lawful  for  the  president,  direct- 
ors, and  company  of  the  said  bank,  to  sell  and  transfer  for 
gold  and  silver  coin,  or  [the]  bullion,  Treasury  notes  and  cer- 
tificates of  stock  subscribed  to  the  capital  of  the  said  bank, 
as  aforesaid. 

SEC.  6.  And  be  it  further  enacted,  That  at  the  opening  of 
the  subscription  to  the  capital  stock  of  the  said  bank,  the 
Secretary  of  the  Treasury  shall  subscribe,  or  cause  to  be  sub- 
scribed, on  behalf  of  the  United  States,  the  said  number  of 
one  hundred  thousand  shares,  amounting  to  ten  millions  of 
dollars,  as  aforesaid ;  which  said  subscriptions,  so  made  by 
the  Secretary  of  the  Treasury,  as  aforesaid,  shall  be  paid  in 
bullion,  in  gold  or  silver  coin,  or  in  stock  of  the  United  States, 
bearing  interest  at  the  rate  of  five  per  centum  per  annum ; 
and  if  payment  thereof,  or  of  any  part  thereof,  be  made  in. 
public  stock,  bearing  interest  as  aforesaid,  the  said  interest 
shall  be  payable  half  yearl}',  to  commence  from  the  time  of 
making  such  payments  on  account  of  the  said  subscription  ; 
and  the  principal  of  the  said  stock  shall  be  redeemable  in  any 
sums,  and  at  any  periods,  which  the  Government  shall  deem 
fit,  after  the  expiration  of  fifteen  j-ears.  And  the  Secretary 
of  the  Treasur}'  shall  cause  certificates  of  public  stock,  to  the 
amount  of  ten  millions  of  dollars,  to  be  prepared  and  made  in 
the  usual  form,  and  shall,  at  his  discretion,  and  whensoever  he 
shall  think  fit,  sell  the  same  for  gold  or  silver  coin,  or  bullion, 
at  not  less  than  the  par  value  thereof,  or  he  shall  pay  over 
and  deliver  three  millions  five  hundred  thousand  dollars  of  the 
same  to  the  said  bank,  on  the  first  day  of  Januar}',  eighteen 
hundred  and  fortj'-two,  and  two  millions  five  hundred  thousand 
dollars  on  the  first  day  of  May,  and  four  millions  of  dollars  of 
the  same  on  the  first  day  of  September,  in  the  same  year ; 
which  said  stock  it  shall  be  lawful  for  the  said  bank  to  sell 
and  transfer  for  gold  and  silver  coin,  or  bullion,  at  their  dis- 
cretion. And  if  the  Secretary  of  the  Treasur}'  shall  sell  the 
whole,  or  any  part  of  the  said  stock,  he  shall  pay  to  the  said 
bank  gold  and  silver  coin,  or  bullion,  to  the  nominal  amount 


276        VETOED  BILLS  AND  OTHER  DOCUMENTS.     [1841. 

of  stock  so  sold  in  like  instalments :  Provided,  nevertheless, 
That  if  the  amount  of  stock  which  may  be  offered  for  the  sub- 
scription of  individuals,  States,  or  corporations,  shall  not  be 
fully  taken  prior  to  the  twentieth  of  December  next,  and  the 
deficiency  do  not  exceed  one  third,  the  residue  shall  be  sub- 
scribed for  by  the  Secretary  of  the  Treasury,  on  behalf  of  the 
United  States,  and  shall  be  sold  by  him  as  soon  thereafter  as 
he  can  obtain  its  par  value  ;  and  for  which  the  SecretaiT  of 
the  Treasury  is  hereby  authorized  to  issue  stocks  of  the  United 
States,  in  manner  as  before  provided. 

[Section  7  incorporates  the  subscribers  by  the  name  of  "  The  Fiscal 
Bank  of  the  United  States,"  until  the  first  day  of  June,  1862  ;  and  author- 
izes them  to  hold  property  without  specified  limit,  and  to  dispose  of  the 
same,  to  have  a  common  seal,  to  establish  necessary  regulations,  and 
generally  to  do  all  needful  acts,  subject  to  the  restrictions  otherwise  pre- 
scribed in  this  law.] 

SEC.  8.  And  be  it  further  enacted,  That,  for  the  manage- 
ment of  the  affairs  of  the  said  corporation,  there  shall  be  nine 
directors,  three  of  whom  shall  be  annually  appointed  by  the 
President  of  the  United  States,  by  and  with  the  advice  and 
consent  of  the  Senate,  and  six  of  whom  shall  be  annually 
elected  at  the  banking-house  in  the  city  of  Washington,  on 
the  first  Monda}*  of  January  in  each  3Tear,  by  the  qualified 
stockholders  of  the  capital  of  said  bank,  other  than  the  United 
States,  and  by  a  plnralitj*  of  votes  then  and  there  actually 
given,  according  to  the  scale  of  voting  hereinafter  prescribed. 

[The  section  then  makes  certain  public  offices  incompatible  with  the 
position  of  director,  forbids  any  director  to  act  as  a  director  of  any  other 
bank,  and  provides  that  the  board  shall  annually  elect  one  of  their  num- 
ber to  be  president  of  the  corporation,  and  that  in  case  of  his  death,  resig- 
nation, or  removal,  they  shall  elect  another.  Any  vacancy  occurring 
among  the  directors  is  to  be  supplied  by  the  President  of  the  United 
States,  or  by  the  remaining  directors,  as  the  case  may  be ;  "  but  the 
President  of  the  United  States  alone  shall  have  power  to  remove  either 
of  the  directors  appointed  by  him  as  aforesaid."] 

SEC.  9.  And  be  it  further  enacted,  That  as  soon  as  the  sum 
of  ten  dollars  on  each  share,  in  bullion,  gold  or  silver  coin, 
Treasuiy  notes,  or  certificates  of  stock,  shall  have  been  actu- 
ally received  on  account  of  the  subscriptions  to  the  capital  of 


1841.]  FISCAL   BANK   BILL   OP    1841.  277 

the  said  bank,  (exclusively  of  the  subscription  aforesaid  on  the 
part  of  the  United  States,)  notice  thereof  shall  be  given,  .  .  . 

[And  the  subscribers  shall  then  proceed  to  elect  six  directors,  and  the 
President  of  the  United  States  to  appoint  three  on  behalf  of  the  govern- 
ment "whether  they  be  stockholders  or  not,"  and  the  directors  thus 
elected  and  appointed  shall  elect  one  of  their  number  president  of  the 
bank  and  shall  serve  until  the  first  Monday  of  January  next  ensuing ; 
and,] 

...  as  soon  as  the  sum  of  six  millions  five  hundred  thousand 
dollars,  in  bullion,  gold  or  silver  coin,  or  in  Treasury  notes, 
or  certificates  of  stock,  shall  have  been  actually  received  on 
account  of  the  subscriptions  to  the  capital  of  the  said  bank, 
(exclusively  of  the  subscription  of  ten  millions  aforesaid  on 
the  part  of  the  United  States,)  the  operations  of  the  same 
shall  thenceforth  commence  and  continue  at  the  cit}T  of 
Washington. 

[Section  10  authorizes  the  directors  to  employ  such  officers,  clerks,  and 
servants  as  may  be  necessary,  and  to  exercise  such  other  powers  for  or- 
dering their  affairs  as  shall  be  prescribed  by  their  by-laws.] 

SEC.  11.  And  be  it  farther  enacted,  That  the  following 
rules,  restrictions,  limitations,  and  provisions,  shall  form  and 
be  fundamental  articles  of  the  constitution  of  said  corporation, 
to  wit : 

[Article  1  provides  for  the  number  of  votes  to  which  any  stockholder 
may  be  entitled  in  voting  for  directors,  in  the  same  manner  as  article  1 
of  section  11  of  the  act  of  1816  establishing  the  second  United  States 
Bank  on  page  85.] 

.  . .  but  no  person,  copartnership,  or  body  politic,  shall  be  en- 
titled to  a  greater  number  than  sixty  votes ;  and,  after  the 
first  election,  no  share  or  shares  shall  confer  a  right  of  voting, 
which  shall  not  have,  been  holden  three  calendar  months  pre- 
vious to  the  day  of  election ;  no  prox}r  to  an}'  officer  of  the 
bank,  or  of  more  than  ninety  days  standing,  shall  be  valid  ; 
no  proxy  shall  have  a  right  to  give  more  than  three  hundred 
votes ;  and  stockholders  actually  resident  citizens  of  the 
United  States,  and  none  others,  may  vote  in  elections,  by 
proxy  or  otherwise  ;  and  an)'  person  holding  a  proxj-  may  be 
required  by  any  stockholder,  at  the  time  of  voting,  to  make 


278  VETOED    BILLS    AND    OTHER   DOCUMENTS.  [1841. 

oath  that  he  believes  his  principal,  in  whose  behalf  he  votes, 
to  be  the  bona  fide  holder  of  the  share  or  shares,  and  that  no 
sale  or  transfer  has  been  made  for  the  purpose  of  evading  the 
scale  of  voting  established  by  this  act. 

2d.  Not  more  than  five-sixths  of  the  directors  elected  by 
the  stockholders,  who  shall  be  in  office  at  the  time  of  an 
annual  election,  shall  be  elected  for  the  succeeding  year; 
and  no  director  shall  hold  his  office  for  more  than  five  3'ears 
out  of  six  in  succession  ;  but  the  director  who  shall  be  presi- 
dent at  the  time  of  an  election,  may  always  be  reappointed, 
or  [s] elected,  as  the  case  may  be. 

3d.  None  but  a  stockholder,  resident  citizen,  shall  be  a 
director.  Not  more  than  two  directors  shall  be  elected,  and 
not  more  than  one  appointed,  out  of  any  one  State  ;  and 
they  shall  be  paid  by  said  bank  such  reasonable  compensa- 
tion for  their  services  as  the  stockholders,  at  their  annual 
meeting,  shall  direct ;  but  the  salary  of  the  president  shall 
be  fixed  by  the  directors. 

4th.  Not  less  than  five  directors  shall  constitute  a  board 
for  the  transaction  of  business,  of  whom  the  President  shall 
always  be  one  ;  and  at  least  three  of  the  five  shall  be  of  the 
directors  elected  by  the  stockholders ;  and  in  case  of  sick- 
ness or  necessar}*  absence  of  the  president,  his  place  shall  be 
supplied  by  an}r  other  director  whom  he,  by  writing,  under 
his  hand,  shall  depute  for  that  purpose  ;  and  the  director  so 
deputed  may  do  and  transact  all  the  necessaiy  business  be- 
longing to  the  office  of  the  president  of  the  said  corporation, 
during  the  continuance  of  the  sickness  or  necessary  absence 
of  the  president. 

[Articles  5  and  6,  providing  for  the  calling  of  a  general  meeting  of 
stockholders  and  for  the  bonds  to  be  given  by  any  cashier  or  treas- 
urer, follow  the  corresponding  articles  of  the  act  of  1816  on  page  86, 
except  that  only  four  weeks'  notice  is  required  for  the  general  meeting.] 

7th.  The  lands,  tenements,  and  hereditaments,  which  it 
shall  be  lawful  for  the  said  corporation  to  hold,  shall  be  only 
such  as  shall  be  requisite  for  its  immediate  accommodation, 
in  relation  to  the  convenient  transaction  of  its  business,  and 
such  as  shall  have  been  purchased  at  sales  upon  judgments 


1841.]  FISCAL   BANK   BILL   OF    1841.  279 

or  decrees,  or  shall  have  been  assigned  or  set  off  to  said 
bank  in  satisfaction  of  said  judgment  or  decrees,  which  shall 
have  been  obtained  for  debts  due,  or  as  have  been  bona  fide 
mortgaged  to  it  by  way  of  security  ;  Provided,  That  no  loan 
shall  be  made  on  the  security  of  real  estate ;  nor  shall  the 
said  corporation  hold  any  one  parcel  of  such  lands  or  tene- 
ments, not  necessary  for  the  convenient  transaction  of  its 
business,  for  a  longer  period  than  five  years. 

[Article  8,  limiting  the  total  amount  of  debts  which  the  corporation 
shall  at  any  time  owe,  is  identical  with  article  8  in  the  act  of  1816,  on 
page  87,  except  that  the  limit  of  debts  is  now  fixed  at  twenty-five 
millions  of  dollars.] 

9th.  The  said  corporation  shall  not  directly  or  indirect!}* 
deal  or  trade  in  anything  except  bills  of  exchange,  gold  or 
silver  com,  or  bullion,  or  goods,  or  lands  purchased  on  exe- 
cution, sued  out  on  judgments,  or  decrees  obtained  for  the 
benefit  of  said  bank,  or  taken  bona  fide  in  the  payment  of 
debts  due  to  it,  or  goods  which  shall  be  the  proceeds  of  its 
lands.  It  shall  not  be  at  liberty  to  purchase  any  public  debt 
whatever,  nor  make  an}*  loan  upon  the  pledge  thereof,  nor 
shall  it  take  more  than  at  the  rate  of  six  per  centum  per 
annum,  for  or  upon  its  loans  or  discounts  ;  nor  shall  the 
board  of  directors  of  the  said  corporation  make  donations  or 
presents  of  its  funds  to  an}-  officer  or  director  for  any  purpose 
whatever. 

10th.  No  loan  shall  be  made  by  the  said  corporation,  for 
the  use  or  on  account  of  the  Government  of  the  United  States, 
to  an  amount  exceeding  one  million  of  dollars,  nor  for  any 
period  exceeding  one  hundred  and  eighty  days,  or  on  account 
of  any  particular  State,  to  an  amount  exceeding  one  hundred 
thousand  dollars,  or  for  any  period  exceeding  one  hundred 
and  eighty  days,  unless  previously  authorized  by  a  law  of 
the  United  States. 

llth.  The  stock  of  the  said  corporation  shall  be  assign- 
able and  transferable,  according  to  such  rules  as  shall  be 
instituted  in  that  behalf,  by  the  by-laws  and  ordinances  of 
the  same.  Provided,  No  assignment  or  transfer  of  stock 
shall  at  any  time  be  made  to  others  than  citizens  of  the 


280  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1841. 

United  States,  or  corporations  and  companies  of  the  several 
States,  or  of  the  United  States,  or  Territories  thereof;  and 
if  otherwise  made,  the  same  shall  be  void,  and  the  stock  so 
unlawfully  transferred  shall  be  forfeited  and  accrue  to  the 
surplus  fund  of  the  bank. 

[Articles  12  and  13,  providing  for  bills  obligatory  under  seal  and  for 
bills  and  notes  payable  on  demand,  follow  closely  tlie  language  of  article 
12  in  the  act  of  1816,  on  page  88,  except  that  no  bill  under  seal  shall  be 
made  for  a  longer  period  than  one  year,  and  that  all  bills  and  notes  are 
to  be  made  payable  on  demand.] 

14th.  Half-yearly  dividends  may  be  made  of  so  much  of 
the  profits  of  the  bank  as  shall  appear  to  the  directors  advis- 
able, not  exceeding  three  and  a  half  per  cent,  for  any  one  half 
year.  When  a  surplus  be}'ond  that  limit  shall  have  accumu- 
lated in  the  said  bank  to  an  amount  exceeding  two  millions 
of  dollars,  the  excess  beyond  that  sum  and  beyond  the  annual 
dividends,  as  such  excess  accrues,  shall  be  annually  trans- 
ferred and  paid  over  to  the  Treasurer  of  the  United  States  ; 
and,  upon  the  expiration  of  this  charter,  any  surplus  which 
may  be  in  the  said  bank,  after  the  payment  of  dividends  as 
aforesaid,  and  after  reimbursing  the  capital  of  the  stockhold- 
ers, shall  in  like  manner  be  paid  into  the  Treasury  of  the 
United  States.  If  the  dividends  shall  in  any  half  year  fall 
below  the  above  limitation  of  three  and  a  half  per  cent.,  the 
Secretary  of  the  Treasuiy  shall,  out  of  the  surpluses  which 
shall  have  been  previously  paid  over  to  the  Treasurer,  but 
out  of  no  other  funds  or  money  in  the  Treasury  of  the  United 
States,  pay  a  sum  sufficient  to  make  up  the  deficiency.  The 
directors  shall  make  no  dividends  except  from  the  nett  profits 
arising  from  the  business  of  the  corporation,  and  shall  not  at 
an}T  time,  or  in  an}-  manner,  pay  to  the  stockholders,  or  any 
of  them,  any  part  of  the  capital  stock  of  the  said  corporation  ; 
nor  shall  they  at  any  time,  or  in  any  way  or  manner,  reduce 
the  capital  stock  of  the  said  corporation  without  the  consent 
of  Congress ;  nor  shall  the  said  directors,  either  of  the  said 
principal  bank  or  of  any  branch  or  office  of  discount  and  de- 
posit, or  an}-  agency,  discount  or  suffer  to  be  discounted,  or 
received  in  payment,  or  suffer  to  be  received  in  payment, 


1841.]  FISCAL   BANK    BILL    OF    1841.  281 

any  note  or  other  evidence  of  debt  as  a  payment  of  or  upon 
any  instalment  of  the  said  capital  stock  actually  called  for 
and  required  to  be  paid,  or  with  the  intent  of  providing  the 
means  of  making  such  payment ;  nor  shall  any  of  the  said  di- 
rectors receive  or  discount,  or  suffer  to  be  received  or  dis- 
counted, any  note  or  other  evidence  of  debt,  with  intent  of 
enabling  any  stockholder  to  withdraw  an}"  part  of  the  money 
paid  in  by  him  on  his  stock ;  nor  shall  the  said  directors  ap- 
ply, or  suffer  to  be  applied,  any  portion  of  the  funds  of  the 
said  corporation,  directly  or  indirectly,  to  the  purchase  of 
shares  of  its  own  stock  ;  nor  shall  the  said  directors,  or  any 
of  them,  receive  as  a  security  for  any  loan  or  discount,  or  in 
payment  or  satisfaction  of  any  debt  due  to  the  said  corpora- 
tion, except  in  the  necessary  course  of  collection  of  debts  pre- 
viously contracted  in  a  bona  fide  manner  in  the  ordinary 
course  of  its  banking  operations,  and  actually  due  and  un- 
paid, an}r  shares  of  the  capital  stock  of  the  said  corporation ; 
and  any  shares  of  the  said  capital  stock  so  received  in  pay- 
ment of  any  such  debts  shall  be,  in  good  faith,  sold  and  trans- 
ferred from  the  hands  and  ownership  of  the  said  corporation 
within  ten  months  from  the  time  of  its  transfer  to  and  recep- 
tion by  the  same,  in  the  manner  and  for  the  purposes  afore- 
said ;  nor  shall  the  said  directors,  or  any  of  them,  receive 
from  an}*  other  banking  or  other  stock  corporation  shares  of 
the  stock  of  any  such  banking  or  other  stock  corporation,  or 
any  notes,  bonds,  or  other  evidences  of  debt  issued  by  or  upon 
the  credit  of  such  corporation,  in  exchange  for  the  shares  of 
stock,  notes,  bonds,  or  other  evidences  of  debt  of  the  corpora- 
tion created  by  this  act. 

And  the  said  directors,  in  determining  what  are  "  nett 
profits "  of  the  said  corporation,  from  which  the  dividends 
allowed  by  this  article  may  be  made,  shall  first  deduct  from 
the  profits  of  the  business  of  the  said  corporation  all  expenses 
paid  or  incurred,  both  ordinary  and  extraordinary,  attending 
the  management  of  the  affairs,  and  the  transaction  of  the  busi- 
ness of  the  said  corporation  ;  all  interest  paid,  or  then  accrued, 
due  and  unpaid,  on  debts  owed  by  the  said  corporation  ;  and 
all  losses  sustained  by  the  said  corporation ;  and  in  the  com- 


282  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1841. 

putation  of  such  losses,  all  debts  owing  to  the  corporation 
shall  be  included  which  shall  have  remained  due,  without 
prosecution,  and  no  interest  shall  have  been  paid  thereon  for 
more  than  one  }~ear,  or  on  which  judgments  shall  have  been 
recovered  that  shall  have  remained  for  more  than  two  yeara 
unsatisfied,  and  on  which  no  interest  shall  have  been  paid  dur- 
ing that  period.  If  there  shall  be  a  failure  in  the  payment  of 
any  part  of  any  sum  subscribed  to  the  capital  of  the  said  bank, 
the  stockholder  so  delinquent  shall  lose  the  benefit  of  any  divi- 
dend which  may  have  accrued  prior  to  the  time  for  making 
such  payment,  and  during  the  delay  of  the  same. 

loth.  Once  in  every  year  the  directors  shall  lay  before  the 
stockholders,  at  a  general  meeting,  or  publish  for  their  infor- 
mation, an  exact  and  particular  statement  of  the  debts  which 
shall  remain  unpaid  after  the  expiration  of  the  original  credit, 
and  of  the  surplus  of  the  profits,  if  any,  after  deducting  losses 
and  dividends. 

16th.  The  directors  of  the  said  corporation  shall  establish 
one  competent  office  of  discount  and  deposit  in  any  State  in 
which  two  thousand  shares  shall  have  been  subscribed,  or  may 
be  held,  whenever,  upon  application  of  the  Legislature  of  such 
State,  Congress  ma}'  by  law  require  the  same.  And  the  said 
directors  may  also  establish  one  or  more  competent  offices  of 
discount  and  deposit  in  any  Territory  or  District  of  the  United 
States,  and  in  any  State,  with  the  assent  of  such  State ;  and 
when  established,  the  said  office  or  offices  shall  be  only  with- 
drawn or  removed  by  the  said  directors  prior  to  the  expiration 
of  this  charter,  with  the  previous  assent  of  Congress :  Pro- 
vided, in  respect  to  any  State  that  shall  not,  at  the  first  ses- 
sion of  the  Legislature  thereof  held  after  the  passage  of  this 
act,  by  resolution  or  other  usual  legislative  proceeding,  uncon- 
ditionally assent  or  dissent  to  the  establishment  of  such  office 
or  offices  within  it,  such  assent  of  the  said  State  shall  be 
thereafter  presumed :  And  provided,  nevertheless.  That  when- 
ever it  shall  become  necessary  and  proper  for  carrying  into 
execution  any  of  the  powers  granted  by  the  Constitution,  to 
establish  an  office  or  offices  in  any  of  the  States  whatever,  and 
the  establishment  thereof  shall  be  directed  by  law,  it  shall  be 


1841.]  FISCAL   BANK   BILL   OF    1841.  283 

the  duty  of  the  said  directors  to  establish  such  office  or  offices 
accordingly.  And  the  said  directors  shall  have  power  to  com- 
mit the  management  of  the  said  offices,  and  the  business  thereof, 
respectively,  to  such  persons,  and  under  such  regulations  as 
they  may  deem  proper,  not  being  contrary  to  law  or  to  this 
charter.  Or,  instead  of  establishing  such  offices,  it  shall  be 
lawful  for  the  directors  of  the  said  corporation,  from  time  to 
time,  to  employ  any  agent  or  agents,  or  any  other  bank  or 
banks,  to  be  approved  by  the  Secretary  of  the  Treasury,  at 
any  place  or  places  that  the  said  directors  may  deem  safe  and 
proper,  to  manage  and  transact  the  business  proposed  as  afore- 
said, other  than  for  the  purposes  of  discount,  and  to  perform 
the  duties  hereinafter  required  of  the  said  corporation,  to  be 
managed  and  transacted  by  such  officers,  under  such  agree- 
ments, and  subject  to  such  regulations  as  they  shall  deem  just 
and  proper.  Not  more  than  nine,  nor  less  than  five  managers 
or  directors  of  every  office,  established  as  aforesaid,  shall  be 
annually  appointed  by  the  directors  of  the  said  corporation, 
to  serve  one  year.  The  said  managers  or  directors  shall  choose 
a  president  from  their  own  number ;  they  shall  be  citizens  of 
the  United  States,  and  residents  of  the  State,  Territory,  or 
District  wherein  such  office  is  established ;  and  at  least  one  of 
the  said  managers  or  directors  shall  be  ineligible  to  reappoint- 
ment  at  the  end  of  every  first  and  each  succeeding  year ;  but 
the  president  may  be  always  reappointed. 

17th.  The  officer  at  the  head  of  the  Treasury  Department 
of  the  United  States  shall  be  furnished,  from  time  to  time, 
as  often  as  he  may  require,  not  exceeding  once  a  week,  with 
such  statements  of  the  condition  and  business  of  said  cor- 
poration as  he  may  specially  direct ;  and  he  shall  also  have  a 
right  to  inspect,  or  cause  to  be  inspected  by  some  one  by  him 
duly  authorized,  all  the  books,  papers,  and  accounts  of  the 
said  corporation,  of  ever}"  kind,  including  the  accounts  of 
individuals,  and  to  make,  or  cause  to  be  made,  an  examina- 
tion into  the  affairs,  transactions,  and  condition  of  the  cor- 
poration ;  and  the  condition  of  the  bank  shall  be  published 
monthby,  in  such  manner,  and  with  such  particularity  as  the 
Secretary  of  the  Treasury  shall  direct.  And  the  said  bank, 


284  VETOED    BILLS    AND    OTHER   DOCUMENTS.  [1841. 

and  its  offices  of  discount  and  deposit,  shall  be  open  at  all 
times  to  the  full  and  unrestricted  inspection  and  examination 
of  a  committee  of  either  House  of  Congress,  a  committee  of 
the  stockholders,  and  to  each  and  all  of  the  directors  of  the 
bank.  And,  for  the  purpose  of  securing  a  full  and  unre- 
stricted inspection  and  examination  as  aforesaid,  the  Secre- 
tary of  the  Treasury,  or  any  one  by  him  duly  authorized,  or 
a  committee  of  either  House  of  Congress,  may  respectively 
summon  and  examine,  under  oath,  all  the  directors,  officers, 
or  agents  of  the  said  corporation,  and  of  any  branch  or 
agency  thereof,  and  such  other  witnesses  as  they  may  think 
proper,  in  relation  to  the  affairs,  transactions,  and  condition 
of  the  corporation ;  and  any  such  director,  officer,  agent,  or 
other  person,  who  shall  refuse,  without  justifiable  cause,  to 
appear  and  testify  when  thereto  required,  as  aforesaid,  shall, 
on  conviction,  be  subject  to  a  fine  not  exceeding  one  thou- 
sand dollars,  and  imprisonment  for  a  term  not  exceeding  one 
year.  And  upon  the  question  of  any  loan  or  discount  ex- 
ceeding one  thousand  dollars,  where  the  same  is  granted,  if 
any  member  shall  dissent,  the  vote  shall  be  taken  by  ayes 
and  noes,  and  shall  be  entered  on  the  books  of  the  bank,  and 
be  subject  to  the  same  inspection  as  the  other  proceedings 
of  said  bank ;  and  no  part  of  the  proceedings  of  the  bank, 
nor  any  loans,  discounts,  or  payments  made  b}T  it,  nor  any 
order  given  by  it,  shall  be  concealed  or  kept  secret  from  the 
Government  directors,  nor  shall  said  directors  be  excluded 
from  the  free  and  full  participation  in  all  the  transactions 
and  business  of  the  institution. 

18th.  No  note  shall  be  issued  of  a  less  denomination  than 
five  dollars  ;  but  Congress  may  hereafter,  if  it  shall  think  fit, 
restrain  the  lowest  denomination  of  notes  to  ten  dollars  ;  nor 
shall  the  said  bank  knowingly  increase  the  amount  of  the 
debts  due  to  it,  when  the  notes  in  circulation  exceed  three 
times  the  amount  of  specie  in  its  vaults  ;  and  whenever  such 
excess  takes  place,  it  shall  be  the  duty  of  the  said  corpora- 
tion to  return  to  such  proportion  as  soon  as  shall  be  safe  and 
practicable. 

19th.   The  debts  due  and  becoming  due  to  said  bank  shall 


1841.]  FISCAL -BANK    BILL   OF    1841.  285 

never,  at  any  one  time,  exceed  the  amount  of  the  capital 
stock  actually  paid  in,  and  seventy-five  per  cent,  advance 
thereon. 

20th.  No  paper  shall  be  discounted,  or  any  loan  made  by 
said  bank  for  a  longer  period  than  one  hundred  and  eighty 
days ;  nor  shall  any  note,  or  bill,  or  other  debt,  or  evidence 
of  debt,  be  renewed  or  extended  by  any  engagement  or  con- 
tract of  said  bank,  after  the  time  for  which  it  was  negotiated 
shall  have  expired. 

21st.  The  said  bank  shall  not  hold  any  public  debt  or 
stocks,  or  the  stocks  of  any  incorporated  institution,  unless 
taken  for  the  security,  or  in  satisfaction  of  debts  previously 
contracted. 

22d.  The  said  bank  shall  not  pay  out  the  notes  of  any 
other  bank,  or  anything  except  legal  coin,  or  its  own  notes. 

23d.  The  directors  of  the  said  bank  shall  not,  within  the 
District  of  Columbia,  discount  an}*  promissory  note  or  bill  of 
exchange,  nor  make  an}'  loan  whatever,  except  it  be  a  loan 
to  the  Government  of  the  United  States,  according  to  the 
provisions  of  law. 

24th.  All  notes  or  bills,  adapted  and  intended  to  circulate 
as  money,  shall  be  prepared  under  the  direction  of  the  parent 
institution  at  Washington,  shall  be  signed  as  hereinbefore 
provided  for,  and  shall  be  made  payable  at  the  banking-house 
in  Washington,  or  at  some  one  of  the  offices  of  discount  and 
deposit,  to  be  specified  on  the  face  of  the  note  or  bill,  except 
notes  of  a  denomination  not  exceeding  twenty  dollars,  which 
may  be  signed  by  the  president  and  cashier  of  any  office  of 
discount  and  deposit  at  which  they  ma}r  be  issued  and  made 
payable,  but  shall,  nevertheless,  be  prepared  at  and  author- 
ized by  the  parent  institution  at  Washington.  And  no  notes 
or  bills  but  such  as  are  prepared  and  signed,  as  aforesaid, 
shall  be  issued  by  any  of  the  said  offices  of  discount  and 
deposit :  Provided,  That  nothing  herein  contained  shall  be 
so  construed  as  to  prohibit  the  said  offices  from  selling  drafts 
for  fifty  dollars  and  upwards,  each,  drawn  and  intended  for 
the  purpose  of  remittance. 

The  notes  or  bills  of  the  said  corporation,  although  the 


286  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1841. 

same  be  upon  their  face,  respective!}',  made  payable  at 
a  particular  place  only,  shall,  nevertheless,  be  received  by 
the  said  corporation,  or  at  any  of  its  offices  of  discount  and 
deposit,  when  tendered  in  liquidation  or  payment  of  any  debt 
or  balance  due  to  said  corporation. 

25th.  The  officers  of  the  corporation  shall  not  be  permitted 
to  borrow  money  from  the  said  corporation,  or  contract  any 
debt  therewith  in  any  manner  whatever ;  and  no  note  or  bill, 
of  which  such  officer  is  maker,  drawer,  endorser,  acceptor,  or 
otherwise  a  part}',  shall  be  discounted :  Provided,  That  the 
entire  liability  of  any  one  director  of  any  of  said  offices  to 
said  corporation  may  exist  to  an  amount  not  exceeding  ten 
thousand  dollars :  And  provided,  also,  That  no  note  or  bill 
shall  be  discounted  for  an}7  member  of  either  House  of  Con- 
gress of  the  United  States. 

[Sections  12  and  13  prescribe  the  penalties  to  be  imposed  in  case  the 
corporation,  or  any  person  to  its  use,  shall  deal  in  goods,  wares,  or  mer- 
chandise, contrary  to  the  provisions  of  this  act,  or  shall  lend  any  sum  of 
money  for  the  use  of  the  Government  of  the  United  States,  to  an  amount 
exceeding  one  million  of  dollars,  or  of  any  particular  State,  to  an  amount 
exceeding  one  hundred  thousand  dollars,  unless  specially  authorized 
by  law.] 

SEC.  14.  And  be  it  further  enacted,  That  the  bills  or 
notes  of  the  said  corporation  originally  made  payable,  or 
which  shall  have  become  payable  on  demand,  shall  be  re- 
ceivable in  all  payments  to  the  United  States,  unless  other- 
wise directed  by  act  of  Congress :  Provided,  however,  That 
if  the  said  bank,  or  any  of  its  branches,  shall  at  an}7  time 
suspend  specie  payments,  or  shall  neglect  or  refuse  to  dis- 
charge, on  demand,  any  and  all  of  its  liabilities  in  specie, 
then  its  bills  or  notes  shall  not,  during  such  suspension,  be 
received  in  payment  of  any  debt  or  demand  of  the  United 
States  ;  and  such  suspension  of  specie  payments  shall  be  held 
and  adjudged  a  cause  of  forfeiture  of  the  charter  hereby 
granted. 

SEC.  15.  And  be  it  further  enacted,  That  during  the  con- 
tinuance of  this  act,  and  whenever  required  by  the  Secretary 
of  the  Treasury,  the  said  corporation  shall  give  the  necessary 


1841.]  FISCAL    BANK   BILL   OP    1841.  287 

facilities  for  transferring  the  public  funds  from  place  to  place 
within  the  United  States,  or  the  Territories  thereof,  and  for 
distributing  the  same  in  payment  of  the  public  creditors,  and 
shall  also  do  and  perform  the  several  respective  duties  for- 
merly required  of  the  pension  agents  and  commissioners  of 
loans  for  the  several  States,  or  of  any  one  or  more  of  them, 
without  charging  commissions,  or  claiming  allowances  on 
account  of  difference  of  exchange. 

SEC.  16.  And  be  it  further  enacted,  That  the  deposits  of 
the  money  of  the  United  States  in  places  in  which  the  said 
bank  and  branches  thereof  may  be  established,  shall  be  made 
in  said  bank  or  branches  thereof,  unless  Congress  shall  other- 
wise direct  by  law ;  and  that  all  public  moneys  in  deposit  in 
said  bank,  or  standing  on  its  books  to  the  credit  of  the  Treas- 
urer, shall  be  taken  and  deemed  to  be  in  the  Treasury  of  the 
United  States,  and  all  payments  made  by  the  Treasurer  shall 
be  in  checks  drawn  on  said  bank  :  Provided,  That  if  the  suid 
bank  shall  suspend  specie  pa^-ments  during  the  recess  of  Con- 
gress, it  shall  be  the  duty  of  the  Secretary  of  the  Treasury  to 
provide  for  the  safe  keeping  of  the  public  moneys  until  the 
action  of  Congress  can  be  had  thereon,  and  he  shall  report 
the  same  to  Congress  on  the  first  day  of  the  session  next  after 
such  suspension. 

[Section  17,  forbidding  the  suspension  of  specie  payment  upon  any  of 
the  obligations  of  the  bank,  and  providing  the  remedy  therefor,  follows 
the  language  of  section  17  of  the  act  of  1816,  on  page  92,  except  that 
under  the  final  clause  no  jurisdiction  in  the  courts  of  the  several  States 
is  provided  for. 

Sections  18  and  19  prescribe  the  penalties  for  forging,  counterfeiting, 
or  altering  bills  or  notes  of  the  bank  or  checks  drawn  upon  it,  and  for  the 
like  offences.  Section  20  provides  for  punishing  embezzlement,  or  false 
entries  upon  the  books  of  the  bank,  by  any  of  its  officers. 

Section  21  engages  that  no  other  bank  shall  be  established  by  Congress 
during  the  continuance  of  this  corporation,  except  that  in  the  District  of 
Columbia  banks  may  be  established  until  there  is  an  aggregate  capital 
not  exceeding  five  millions  of  dollars,  and  follows  closely  the  language  of 
section  21  of  the  act  of  1816,  on  page  93.] 

SEC.  22.  And  be  it  further  enacted,  That  if  the  subscrip- 
tions and  payments  to  said  bank  shall  not  be  made  and  com- 


288  VETOED    BILLS   AND    OTHER    DOCUMENTS.  [1841. 

pleted,  so  as  to  enable  the  same  to  commence  its  operations ; 
or,  if  the  said  bank  shall  not  commence  its  operations  on  or 
before  the  first  Monday  in  April  next,  then,  and  in  that  case, 
Congress  may,  at  an}'  time  within  twelve  months  thereafter, 
declare,  03-  law,  this  act  null  and  void. 

[Section  23  provides  for  summoning  the  corporation  by  scire  facias  to 
answer  charges  of  violating  its  charter  and  for  the  forfeiture  of  the  charter 
upon  proof  of  the  alleged  violation.  Section  24  provides  for  restraining 
the  bank  by  injunction  from  exercising  any  franchise  or  carrying  on  any 
business  not  allowed  by  this  act.  Both  sections  provide  that  every  issue 
of  fact  joined  between  the  United  States  and  the  corporation  shall  be 
tried  by  a  jury,  and  that  any  final  judgment  or  decree  under  these  sec- 
tions shall  be  examinable  in  the  Supreme  Court  of  the  United  States.] 

NOTE.  —  Senate  bill  No.  5  of  1841  was  returned  to  the  Senate  by  the 
President  of  the  United  States  with  his  objections,  August  16,  1841,  and 
then  failing  to  receive  the  vote  of  two  thirds  of  that  house,  did  not  become 
a  law. 


The  Fiscal  Corporation  bill  of  September,  1841. 

[Printed  in  the  Journal  of  the  House  of  Representatives,  September  10, 
1841,  page  497.] 

An  Act  to  provide  for  the  better  collection,  safe-keeping,  and 
disbursement  of  the  public  revenue,  by  means  of  a  cor- 
poration to   be  styled  the  Fiscal  Corporation   of  the 
United  States. 

JBe  it  enacted,  .  .  .  That  a  Fiscal  Corporation  of  the  United 
States  shall  be  established  in  the  District  of  Columbia,  with  a 
capital  of  twenty-one  millions  of  dollars,  divided  into  two  hun- 
dred and  ten  thousand  shares,  of  one  hundred  dollars  each 
share.  Sevent}1  thousand  shares  shall  be  subscribed  for  by 
the  United  States,  and  the  residue  of  the  said  capital  may  be 
subscribed  and  paid  for  by  individuals,  companies,  corpora- 
tions, or  States,  the  said  individuals  being  citizens  of  the 
United  States,  and  the  said  companies  and  corporations  being 
of  the  several  States,  or  of  these  United  States,  or  Territories, 
thereof,  in  the  manner  hereinafter  specified.  But  Congress 
reserves  to  itself  the  power  of  augmenting  the  capital  of  the 
said  corporation,  at  any  time  after  the  1st  of  January,  1851, 


1841.]  FISCAL   CORPORATION   BILL   OF    1841.  289 

by  authorizing  the  addition  thereto  of  a  sum  not  exceeding 
fourteen  millions  of  dollars,  divided  into  shares  as  aforesaid, 
which  may  be  subscribed  for,  at  not  less  than  their  par  value, 
by  the  United  States,  or  by  any  State,  corporation,  company, 
or  individuals,  in  the  manner  directed  by  law :  Provided, 
That  the  United  States  shall  not  subscribe  for  more  than  one- 
third  of  the  said  additional  capital. 

[Section  2  provides  for  the  appointment  of  commissioners  to  receive 
subscriptions,  and  for  the  time,  place,  and  manner  of  receiving  them,  and 
gives  directions  as  to  the  course  of  proceeding  in  case  the  amount  sub- 
scribed exceeds  or  falls  short  of  the  fourteen  millions  thus  to  be  raised. 

Section  3  provides  that  it  shall  be  lawful  for  any  individual,  company, 
corporation,  or  State  to  subscribe  for  not  exceeding  two  thousand  shares 
of  the  capital ;  and  then  makes  the  same  provisions  as  those  in  the  Fiscal 
Bank  bill  for  the  medium  of  payment  and  for  the  rates  at  which  foreign 
coins  shall  be  received ;  and  also  the  same  provisions  as  to  the  time  and 
manner  of  payment,  except  however  that  the  time  is  in  all  cases  to  be 
calculated  from  the  first  Monday  in  October,  1841. 

Sections  4  and  5  are  identical  with  sections  4  and  5  of  the  Fiscal  Bank 
bill,  with  the  exception  of  the  change  of  name. 

Section  6  provides  for  the  subscription  of  seven  millions  of  dollars  on 
behalf  of  the  United  States,  to  be  made  in  the  same  manner  as  in  section  6 
of  the  Fiscal  Bank  bill,  and  the  instalments  to  be  payable,  $2,450,000  on 
the  first  day  of  January,  1842,  $1,750,000  on  the  first  day  of  May,  and 
$2,800,000  on  the  first  day  of  September.  Stock  not  subscribed  for  by 
individual  States  or  corporations  before  the  first  day  of  January,  and  not 
exceeding  one  third  of  the  amount  offered,  may  be  subscribed  for  on  be- 
half of  the  United  States,  to  be  sold  as  soon  as  its  par  value  can  be 
obtained. 

Section  7  incorporates  the  subscribers  by  the  name  of  "  The  Fiscal 
Corporation  of  the  United  States,"  until  the  first  day  of  June,  1862 ;  and 
authorizes  them  to  hold  property  without  specified  limit,  and  to  dispose 
of  the  same,  to  have  a  common  seal,  to  establish  all  necessary  regula- 
tions, and  generally  to  do  all  needful  acts,  subject  to  the  restrictions 
otherwise  prescribed  in  this  law. 

Section  8  makes  the  same  provisions  as  to  the  number  and  choice  or 
appointment  of  directors  and  president  as  are  made  in  section  8  of  the 
Fiscal  Bank  bill. 

Sections  9  and  10  are  also  identical  with  the  corresponding  sections 
of  the  Fiscal  Bank  bill,  except  that  it  is  provided  that  the  corporation  may 
begin  its  operations  at  the  city  of  Washington,  as  soon  as  four  millions  of 
dollars  shall  have  been  received  on  account  of  the  subscriptions  to  capital, 
exclusive  of  the  subscription  made  on  behalf  of  the  United  States.] 

19 


290  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1841. 

SEC.  11.  And  be  it  further  enacted,  That  the  following 
rules,  restrictions,  limitations,  and  provisions  shall  form  and 
be  fundamental  articles  of  the  constitution  of  said  corporation, 
to  wit : 

[Articles  1, 2,  3,  4,  5,  and  6  are  identical  with  the  corresponding  articles 
of  section  11  of  the  Fiscal  Bank  bill. 

Article  7  is  identical  with  the  corresponding  article  of  the  Fiscal  Bank 
bill,  omitting  the  provision  "  that  no  loan  shall  be  made  on  the  security 
of  real  estate." 

Article  8  provides  that  the  total  amount  of  debts  owed  by  the  corpora- 
tion, over  and  above  its  deposits,  shall  not  exceed  seventeen  million  five 
hundred  thousand  dollars,  unless  previously  authorized  by  law ;  and  is 
otherwise  identical  with  the  corresponding  article  of  section  11  of  the 
Fiscal  Bank  bill.] 

9th.  The  said  corporation  shall  not,  directly  or  indirectly, 
deal  or  trade  in  anything  except  foreign  bills  of  exchange, 
including  bills  or  drafts  drawn  in  one  State  or  Territory,  the 
District  of  Columbia  included,  and  payable  in  another,  or  gold 
or  silver  coin,  or  bullion,  or  goods,  or  lands  purchased  on  ex- 
ecution, sued  out  on  judgments,  or  decrees  obtained  for  the 
benefit  of  said  corporation,  or  taken  bona  fide  in  the  payment 
of  debts  due  to  it,  or  goods  which  shall  be  the  proceeds  of  its 
lands.  It  shall  not  be  at  liberty  to  purchase  an}'  public  debt 
whatever ;  nor  shall  the  board  of  directors  of  the  said  corpo- 
ration make  donations  or  presents  of  its  funds  to  any  officer 
or  director  for  any  purpose  whatever. 

10th.  It  shall  be  lawful  for  the  said  corporation  to  loan  to 
the  Government  of  the  United  States  to  an  amount  not  ex- 
ceeding one  million  of  dollars,  and  for  a  period  not  exceeding 
one  hundred  and  eighty  days,  or  to  any  particular  State  to  an 
amount  not  exceeding  one  hundred  thousand  dollars,  or  for 
any  period  not  exceeding  one  hundred  and  eight}'  da}"s  ;  but 
such  loans  may  be  for  a  larger  amount  and  for  a  longer  period 
if  previously  authorized  by  a  law  of  the  United  States. 

llth.  The  stock  of  the  said  corporation  shall  be  assignable 
and  transferable,  according  to  such  rules  as  shall  be  instituted 
in  that  behalf,  by  the  by-laws  and  ordinances  of  the  same. 

[Articles  12,  13,  14,  and  15,  are  nearly  the  same  as  the  corresponding 
articles  of  section  11  of  the  Fiscal  Bank  bill,  except  that  in  article  14  the 


1841.]  FISCAL   CORPORATION   BILL    OF    1841.  291 

clauses  forbidding  the  directors  to  discount  or  receive  any  note  as  a  pay- 
ment upon  the  capital  stock,  beginning  "  nor  shall  the  said  directors,"  and 
ending  "on  his  stock"  are  omitted.] 

16th.  That,  for  the  purpose  of  canning  on  and  transacting 
the  business  of  the  said  corporation  herein  and  hereb}-  author- 
ized, and  fulfilling  the  duties  herein  and  herebj*  required,  it 
shall  be  lawful  for  the  directors  of  the  said  corporation,  from 
time  to  time,  to  establish  agencies  in  any  State  or  Territory 
of  the  United  States,  at  any  place  or  places  the}-  may  deem 
safe  and  proper,  and  to  employ  an}'  agent  or  agents,  or,  with 
the  approbation  of  the  Secretary  of  the  Treasury,  an}-  bank  or 
banks,  under  such  agreements,  and  subject  to  such  regulations, 
as  they  may  deem  just  and  proper,  not  being  contrary  to  law 
or  to  this  charter ;  and  the  same  agencies,  at  their  pleasure,  to 
relinquish  or  discontinue,  and  the  same  agent  or  agents  to 
remove,  and  to  commit  to  such  agents,  agencies,  or  banks, 
such  portions  of  the  business  and  concerns  of  the  said  corpo- 
ration as  they  may  think  fit :  Provided,  ahcays,  That  neither 
the  said  corporation,  nor  any  agent  or  agents  thereof,  nor  any 
bank  or  banks  employed  by  the  same,  shall  be  authorized  to 
discount  promissory  notes  with  the  moneys  or  means  of  the 
said  corporation,  but  shall  employ  the  same  in  the  business 
and  dealing  in  foreign  bills  of  exchange,  including  bills  and 
drafts  drawn  in  one  State  or  Territory  and  payable  in  another. 

[Article  17  is  the  same  as  the  corresponding  article  of  section  11  of  the 
Fiscal  Bank  bill,  except  that  the  clause  to  enable  any  director  to  call  for 
the  ayes  and  noes  upon  any  loan  exceeding  one  thousand  dollars  is 
omitted. 

Articles  18  and  19  are  identical  with  the  corresponding  articles  of  sec- 
tion 11  of  the  Fiscal  Bank  bill;  articles  20  and  21  with  articles  21  and  22 
of  the  Fiscal  Bank  bill ;  and  article  20  of  that  bill  is  omitted.] 

22d.  The  directors  of  the  said  corporation  shall  not,  within 
the  District  of  Columbia,  buy  or  discount  am*  bill  of  exchange, 
nor  make  any  loan  whatever,  except  it  be  a  loan  to  the  Gov- 
ernment of  the  United  States,  according  to  the  provisions  of 
law. 

23d.  All  notes  or  bills,  adapted  and  intended  to  circulate 
as  money,  shall  be  prepared  under  the  direction  of  the  parent 


292  VETOED    BILLS   AND    OTHER   DOCUMENTS.  [1841. 

institution  at  Washington,  shall  be  signed  as  hereinbefore 
provided  for,  and  shall  be  made  payable  at  the  house  of  said 
corporation  in  Washington,  or  at  some  one  of  its  agen  ,'ies,  to 
be  specified  on  the  face  of  the  note  or  bill,  except  notes  of  a 
denomination  not  exceeding  ten  dollars,  which  may  be  signed 
by  an  authorized  person  at  the  agency  at  which  they  may  be 
issued  and  made  payable,  but  shall,  nevertheless,  be  prepared 
at,  and  authorized  by,  the  parent  institution  at  Washington. 
And  no  notes  or  bills  but  such  as  are  prepared  and  signed, 
as  aforesaid,  shall  be  issued  by  any  of  the  said  agencies : 
Provided,  That  nothing  herein  contained  shall  be  so  construed 
as  to  prohibit  the  said  agencies  from  selling  drafts  for  fifty 
dollars  and  upwards,  each,  drawn  and  intended  for  the  pur- 
pose of  remittance. 

24th.  The  notes  or  bills  of  the  said  corporation,  although 
the  same  be  upon  their  face,  respectively,  made  pa}*able  at  a 
particular  place  only,  shall,  nevertheless,  be  received  by  the 
said  corporation,  or  at  any  of  its  agencies,  when  tendered  in 
liquidation  or  payment  of  any  debt  or  balance  due  to  said 
corporation. 

25th.  The  officers  of  the  corporation,  and  the  agents  thereof, 
shall  not  be  permitted  to  borrow  money  from  the  said  corpo- 
ration, or  contract  any  debt  therewith,  in  an}-  manner  what- 
ever ;  and  no  bill  or  other  evidence  of  debt,  of  which  such 
officer  or  agent  is  maker,  drawer,  endorser,  accepter,  or  oth- 
erwise a  party,  shall  be  discounted. 

[Sections  12  and  13  prescribe  the  penalties  to  be  imposed  if  the  corpo- 
ration, or  any  person  to  its  use,  shall  deal  in  goods,  wares,  or  merchan- 
dise, contrary  to  the  provisions  of  this  act,  or  if  it  shall  lend  any  sum  of 
money  for  the  use  of  the  Government  of  the  United  States  to  an  amount 
exceeding  one  million  of  dollars,  or  of  any  particular  State  to  an  amount 
exceeding  one  hundred  thousand  dollars,  unless  specially  authorized  by 
law.] 

SEC.  14.  And  be  it  further  enacted,  That  the  bills  or  notes 
of  the  said  corporation  originally  made  payable,  or  which  shall 
have  become  pa3'able  on  demand,  shall  be  receivable  in  all 
payments  to  the  United  States,  unless  otherwise  directed  by 
act  of  Congress :  Provided,  however ',  That  if  the  said  corpo- 


1841.]  FISCAL   CORPORATION   BILL   OF    1841.  293 

ration,  or  any  of  its  agencies,  shall  at  any  time  suspend  specie 
payments,  or  shall  neglect  or  refuse  to  discharge,  on  demand, 
any  and  all  of  its  liabilities  in  specie,  then  its  bills  or  notes 
shall  not,  during  such  suspension,  be  received  in  payment  of 
any  debt  or  demand  of  the  United  States  ;  and  such  suspen- 
sion of  specie  payments  for  thirty  days  .in  any  one  year  shall 
be  held  and  adjudged  a  cause  of  forfeiture  of  the  charter 
hereby  granted. 

[Sections  15,  16, 17,  18, 19,  and  20  provide  for  the  facilities  to  be  given 
by  the  corporation  to  the  Treasury  of  the  United  States,  and  for  the  de- 
posit of  the  money  of  the  United  States  in  the  corporation  or  its  agencies ; 
forbid  the  suspension  of  specie  payment  by  the  corporation ;  prescribe  the 
penalties  for  forging,  counterfeiting,  or  altering  notes  of  the  corporation 
or  checks  drawn  upon  it,  and  for  embezzlement  of  its  funds,  or  false  en- 
tries upon  its  books ;  and  are  substantially  identical  with  sections  15-20 
of  the  Fiscal  Bank  act. 

Section  21  provides  "that  no  bank  or  other  corporation,  with  powers 
similar  to  those  herein  and  hereby  conferred,"  shall  be  established  by 
Congress  during  the  continuance  of  this  corporation,  except  that  in  the 
District  of  Columbia  banks  may  be  established  until  there  is  an  aggregate 
capital  not  exceeding  five  millions  of  dollars,  and  follows  closely  the  lan- 
guage of  the  corresponding  section  of  the  act  of  1816,  on  page  93,  and  of 
the  Fiscal  Bank  bill.] 

SEC.  22.  And  be  it  further  enacted,  That  if  the  subscrip- 
tions and  payments  to  said  corporation  shall  not  be  made  and 
completed,  so  as  to  enable  the  same  to  commence  its  opera- 
tions, or  if  the  said  corporation  shall  not  commence  its  opera- 
tions on  or  before  the  first  Monday  in  May  next,  then,  and 
in  that  case,  Congress  ma}*,  at  any  time  within  twelve  months 
thereafter,  declare,  by  law,  this  act  null  and  void. 

[Section  23  provides  for  summoning  the  corporation  by  scire  facias  to 
answer  charges  of  violating  its  charter  and  for  the  forfeiture  of  the  charter 
upon  proof  of  the  alleged  violation.  Section  24  provides  for  restraining 
the  corporation  by  injunction  from  exercising  any  franchise  or  carrying  on 
any  business  not  allowed  by  this  act.  Both  sections  provide  that  every 
issue  of  fact  joined  between  the  United  States  and  the  corporation  shall  be 
tried  by  a  jury,  and  that  any  final  judgment  or  decree  under  these  sec- 
tions shall  be  examinable  in  the  Supreme  Court  of  the  United  States.] 

NOTE.  —  House  bill  No.  14  of  1841  was  returned  to  the  House  of  Rep- 
resentatives by  the  President  of  the  United  States  with  his  objections, 
September  9,  1841,  and,  then  failing  to  receive  the  votes  of  two  thirds  of 
the  House,  did  not  become  a  law. 


294  VETOED   BILLS   AND   OTHER  DOCUMENTS.  [18G8. 

The  Refunding  Bill  of  1868. 

[Printed  in  the  Congressional  Globe,  1867-68,  p.  4466,  and  now  corrected 
by  reference  to  the  original  in  the  department  of  State.] 

An  Act  providing  for  the  payment  of  the  national  debt,  and 
for  the  reduction  of  the  rate  of  interest  thereon. 

Be  it  enacted,  .  .  .  That  the  Secretary  of  the  Treasury  is 
hereby  authorized  to  issue  coupon  or  registered  bonds  of  the 
United  States  in  such  form  as  he  may  prescribe,  and  of  de- 
nominations of  one  hundred  dollars,  or  any  multiple  of  that 
sum,  redeemable  in  coin  at  the  pleasure  of  the  United  States 
after  thirty,  and  forty  years,  respectively,  and  bearing  the 
following  rates  of  yearly  interest,  payable  semi-annually  in 
coin,  that  is  to  say  :  The  issue  of  bonds  falling  due  in  thirty 
years  shall  bear  interest  at  four  and  a  half  per  centum  ;  and 
bonds  falling  due  in  forty  years  shall  bear  interest  at  four  per 
centum,  which  said  bonds  and  the  interest  thereon  shall  be 
exempt  from  the  payment  of  ah1  taxes  or  duties  to  the  United 
States  other  than  such  income  tax  as  ma}-  be  assessed  upon 
other  incomes,  as  well  as  from  taxation  in  any  form  by  or 
under  State,  municipal,  or  local  authority,  and  the  said  bonds 
shall  be  exclusively  used,  par  for  par  for  the  redemption  of  or 
in  exchange  for  an  equal  amount  of  any  of  the  present  out- 
standing bonds  of  the  United  States,  known  as  the  five  twenty- 
bonds,  and  may  be  issued  to  an  amount,  in  the  aggregate, 
sufficient  to  cover  the  principal  of  all  such  five  twenty  bonds 
and  no  more. 

SEC.  2.  And  be  it  further  enacted,  That  there  is  hereby 
appropriated  out  of  the  duties  derived  from  imported  goods 
the  sum  of  one  hundred  and  thirty-five  millions  of  dollars  an- 
nually, which  sum,  during  each  fiscal  year,  shall  be  applied  to 
the  payment  of  the  interest  and  to  the  reduction  of  the  princi- 
pal of  the  public  debt  in  such  a  manner  as  may  be  determined 
by  the  Secretar}'  of  the  Treasury,  or  as  Congress  ma}'  here- 
after direct ;  and  such  reduction  shall  be  in  lieu  of  the  sink- 
ing fund  contemplated  by  the  fifth  section  of  the  act  entitled 
"  An  act  to  authorize  the  issue  of  United  States  notes,  and 


1874.]  CURRENCY  BILL   OF    1874.  295 

for  the  redemption  or  funding  thereof,  and  for  funding  the  float- 
ing debt  of  the  United  States,"  approved  February  twentj'- 
fifth,  eighteen  hundred  and  sixty-two. 

SEC.  3.  And  be  it  further  enacted,  That  from  and  after 
the  passage  of  this  act  no  percentage,  deduction,  commis- 
sion or  compensation  of  any  amount  or  kind  shall  be  allowed 
to  an}'  person  for  the  sale,  negotiation,  redemption  or  ex- 
change of  any  bonds  or  securities  of  the  United  States,  or 
of  any  coin  or  bullion  disposed  of  at  the  Treasury  Depart- 
ment or  elsewhere  on  account  of  the  United  States ;  and  all 
acts  and  parts  of  acts  authorizing  or  permitting,  by  construc- 
tion or  otherwise,  the  Secretary  of  the  Treasury  to  appoint 
airy  agent,  other  than  some  proper  officer  of  his  department, 
to  make  such  sale,  negotiation,  redemption  or  exchange  of 
bonds  and  securities,  are  hereby  repealed. 

NOTE.  —  Senate  bill  No.  207  of  1867-68,  having  passed  the  Senate  and 
the  House  of  Representatives,  was  sent  to  the  President  of  the  United 
States,  July  27,  1868,  and  was  deposited  by  him  in  the  State  Department 
endorsed  as  follows  :  — 

Received  II5-"  A.  M.  July  27th,  1868,  on  which  day,  at  12  o'clock 
M.,  the  two  Houses  of  Congress  adjourned  until  the  third  Mon- 
day in  September,  1868. 

ANDREW  JOHNSON. 


The  Currency  Bill  of  1874. 

[Printed  in  Senate  Executive  Documents  of  1873-74,  No.  44.] 

An  act  to  fix  the  amount  of  United  States  notes  and  the  cir- 
culation of  national  banks,  and  for  other  purposes. 

J3e  it  enacted,  .  .  .  That  the  maximum  amount  of  United 
States  notes  is  hereby  fixed  at  four  hundred  million  dollars. 

SEC.  2.  That  forty-six  millions  in  notes  for  circulation,  in 
addition  to  such  circulation  now  allowed  by  law,  shall  be 
issued  to  national  banking  associations  now  organized  and 
which  ma}r  be  organized  hereafter ;  and  such  increased  circu- 
lation shall  be  distributed  among  the  several  States  as  pro- 
vided in  section  one  of  the  act  entitled  "An  act  to  provide 
for  the  redemption  of  the  three-per-centum  temporary-loan 


296  VETOED   BILLS    AND    OTHER   DOCUMENTS.  [1881. 

certificates,  and  for  an  increase  of  national  bank  notes,"  ap- 
proved July  twelfth,  eighteen  hundred  and  seventy ;  and  each 
national  banking  association,  now  organized  or  hereafter  to 
be  organized,  shall  keep  and  maintain,  as  a  part  of  its  reserve 
required  by  law,  one-fourth  part  of  the  coin  received  by  it  as 
interest  on  bonds  of  the  United  States  deposited  as  security 
for  circulating  notes  or  Government  deposits  ;  and  that  here- 
after only  one-fourth  of  the  reserve  now  prescribed  by  law  for 
national  banking  associations  shall  consist  of  balances  due  to 
an  association  available  for  the  redemption  of  its  circulating 
notes  from  associations  in  cities  of  redemption,  and  upon 
which  balances  no  interest  shall  be  paid. 

NOTE.  —  Senate  bill  No.  617  of  1873-74  was  returned  to  the  Senate 
by  the  President  of  the  United  States  with  his  objections,  April  22, 
1874,  and  then  failing  to  receive  the  votes  of  two-thirds  of  that  house,  did 
not  become  a  law. 


The  Funding  Bill  of  March,  1881. 

[Printed  in  the  Congressional  Record,  1880-81,  p.  2433,  and  now  corrected 
by  reference  to  the  bill  as  ordered  to  be  printed  for  the  Senate,  Feb- 
ruary 17,  1881.] 

An  act  to  facilitate  the  refunding  of  the  national  debt. 

Be  it  enacted.  .  .  .  That  all  existing  provisions  of  law 
authorizing  the  refunding  of  the  national  debt  shall  apply  to 
any  bonds  of  the  United  States  bearing  a  higher  rate  of  in- 
terest than  four  and  one-half  per  centum  per  annum  which  may 
hereafter  become  redeemable  :  Provided,  That  in  lieu  of  the 
bonds  authorized  to  be  issued  by  the  act  of  July  fourteenth, 
eighteen  hundred  and  sevent}r,  entitled  "An  act  to  authorize 
the  refunding  of  the  national  debt,"  and  the  acts  amendatory 
thereto,  and  the  certificates  authorized  by  the  act  of  February 
twentj'-sixth,  eighteen  hundred  and  seventj'-nine,  entitled  "An 
act  to  authorize  the  issue  of  certificates  of  deposit  in  aid  of 
the  refunding  of  the  public  debt,"  the  Secretary  of  the  Trea- 
sury is  hereby  authorized  to  issue  bonds  to  an  amount  not 
exceeding  four  hundred  million  dollars,  of  denominations  of 


1881.]  FUNDING  BILL  OP   1881.  297 

fifty  dollars,  or  some  multiple  of  that  sum,  which  shall  bear 
interest  at  the  rate  of  three  per  centum  per  annum,  pa}-a- 
ble  semi-annually,  redeemable,  at  the  pleasure  of  the  United 
States,  after  five  years,  and  payable  twenty  }-ears  from  the 
date  of  issue ;  and  also  Treasury  notes  to  an  amount  not 
exceeding  three  hundred  million  dollars,  in  denominations 
of  ten  dollars,  or  some  multiple  of  that  sum  not  exceeding 
one  thousand  dollars,  either  registered  or  coupon,  bearing 
interest  at  a  rate  not  exceeding  three  per  centum  per  annum, 
payable  semi-annually,  redeemable  at  the  pleasure  of  the 
United  States,  after  one  year,  and  payable  in  ten  years  from 
the  date  of  issue  ;  and  no  Treasury  note  of  a  less  denomina- 
tion than  one  hundred  dollars  shall  be  registered.  The 
bonds  and  Treasury  notes  shall  be,  in  all  other  respects,  of 
like  character  and  subject  to  the  same  provisions  as  the 
bonds  authorized  to  be  issued  by  the  act  of  July  fourteenth, 
eighteen  hundred  and  seventy,  entitled  "An  act  to  author- 
ize the  refunding  of  the  national  debt,"  and  acts  amendatory 
thereto :  Provided,  That  nothing  in  this  act  shall  be  so  con- 
strued as  to  authorize  an  increase  of  the  public  debt :  Pro- 
vided further,  That  interest  upon  the  six  per  cent,  bonds 
hereby  authorized  to  be  refunded  shall  cease  at  the  expiration 
of  thirty  days  after  publication  of  notice  that  the  same  have 
been  designated  b}*  the  Secretary  of  the  Treasury  for  redemp- 
tion. It  shall  be  the  duty  of  the  Secretary  of  the  Treasury, 
under  such  rules  and  regulations  as  he  may  prescribe,  to 
authorize  public  subscriptions,  at  not  less  than  par,  to  be 
received  at  all  depositories  of  the  United  States,  and  at  all 
national  banks,  and  such  other  banks  as  he  may  designate, 
for  the  bonds  and  for  the  Treasury  notes  herein  provided  for, 
for  thirty  da}-s  before  he  shall  contract  for  or  award  any 
portion  of  said  bonds  or  Treasury  notes  to  any  syndicate  of 
individuals  or  bankers,  or  otherwise  than  under  such  public 
subscriptions ;  and  if  it  shall  happen  that  more  than  the  en- 
tire amount  of  said  bonds  and  Treasury  notes,  or  of  either  of 
them,  has  been  subscribed  within  said  thirty  days,  he  shall 
award  the  full  amount  subscribed  to  all  persons  who  shall 
have  made  bona-fide  subscriptions  for  the  sum  of  two  thou- 


298  VETOED    BILLS    AND    OTHER   DOCUMENTS.  [1881. 

sand  dollars  or  less,  at  rates  most  advantageous  to  the  United 
States,  and  the  residue  ratably  among  the  subscribers  in 
proportion  to  the  amount  by  them  respectively  subscribed, 
at  rates  most  advantageous  to  the  United  States. 

SEC.  2.  The  Secretary  of  the  Treasury  is  hereby  author- 
ized, in  the  process  of  refunding  the  national  debt,  to  ex- 
change, at  not  less  than  par,  any  of  the  bonds  or  Treasury 
notes  herein  authorized  for  any  of  the  bonds  of  the  United 
States  outstanding  and  uncalled  bearing  a  higher  rate  of 
interest  than  four  and  one-half  per  centum  per  annum  ;  and 
on  the  bonds  so  redeemed  the  Secretary  of  the  Treasury  may 
allow  to  the  holders  the  difference  between  the  interest  on 
such  bonds  from  the  date  of  exchange  to  the  time  of  their 
maturit}-,  and  the  interest  for  a  like  period  on  the  bonds  or 
Treasury  notes  issued ;  and  the  bonds  so  received  and  ex- 
changed in  pursuance  of  the  provisions  of  this  act  shall  be 
cancelled  and  destroyed  ;  but  none  of  the  provisions  of  this 
act  shall  apply  to  the  redemption  or  exchange  of  any  of  the 
bonds  issued  to  the  PaciQc  Railway  Companies. 

SEC.  3.  The  Secretary  of  the  Treasury  is  hereb}*  author- 
ized and  directed  to  make  suitable  rules  and  regulations  to 
carry  this  act  into  effect ;  and  the  expense  of  preparing, 
issuing,  advertising,  and  disposing  of  the  bonds  and  Trea- 
sury notes  authorized  to  be  issued  shall  not  exceed  one  half 
of  one  per  centum. 

SEC.  4.  That  the  Secretary  of  the  Treasury  is  herebj- 
authorized,  if  in  his  opinion  it  shall  become  necessaiy,  to 
use  temporarily  not  exceeding  fifty  million  dollars  of  the 
standard  gold  and  silver  coin  in  the  Treasury  in  the  redemp- 
tion of  the  five  and  six  per  cent,  bonds  of  the  United  States 
authorized  to  be  refunded  by  the  provisions  of  this  act,  which 
shall  from  time  to  time  be  repaid  and  replaced  out  of  the 
proceeds  of  the  sale  of  the  bonds  or  Treasury  notes  author- 
ized by  this  act ;  and  he  may  at  any  time  apply  the  surplus 
money  in  the  Treasury  not  otherwise  appropriated,  or  so 
much  thereof  as  he  may  consider  proper,  to  the  purchase 
or  redemption  of  United  States  bonds  or  Treasury  notes 
authorized  by  this  act :  Provided,  That  the  bonds  and  Trea- 


1881.]  FUNDING   BILL    OF    1881.  299 

sury  notes  so  purchased  or  redeemed  shall  constitute  no  part 
of  the  sinking  fund,  but  shall  be  cancelled. 

SEC.  5.  From  and  after  the  first  day  of  July,  eighteen  hun- 
dred and  eighty-one,  the  three  per  centum  bonds  authorized  by 
the  first  section  of  this  act  shall  be  the  only  bonds  receivable 
as  security  for  national-bank  circulation,  or  as  security  for  the 
safe-keeping  and  prompt  payment  of  the  public  mono}'  depos- 
ited with  such  banks  ;  but  when  any  such  bonds  deposited  for 
the  purposes  aforesaid  shall  be  designated  for  purchase  or 
redemption  b}-  the  Secretary  of  the  Treasury,  the  banking 
association  depositing  the  same  shall  have  the  right  to  sub- 
stitute other  issues  of  the  bonds  of  the  United  States  in  lieu 
thereof:  Provided,  That  no  bond  upon  which  interest  has 
ceased  shall  be  accepted  or  shall  be  continued  on  deposit  as 
security  for  circulation  or  for  the  safe-keeping  of  the  public 
money ;  and  in  case  bonds  so  deposited  shall  not  be  with- 
drawn, as  provided  b}-  law,  within  thirty  days  after  interest 
has  ceased  thereon,  the  banking  association  depositing  the 
same  shall  be  subject  to  the  liabilities  and  proceedings  on  the 
part  of  the  Comptroller  provided  for  in  section  fifty-two  hun- 
dred and  thirty-four  of  the  Revised  Statutes  of  the  United 
States :  And  provided  further,  That  section  four  of  the  act 
of  June  twentieth,  eighteen  hundred  and  seventy-four,  entitled 
"  An  act  fixing  the  amount  of  the  United  States  notes,  provid- 
ing for  a  redistribution  of  the  national-bank  currency,  and  for 
other  purposes,"  be,  and  the  same  is  hereb}-,  repealed ;  and 
sections  fifty-one  hundred  and  fifty-nine  and  fifty -one  hundred 
and  sixty  of  the  Revised  Statutes  of  the  United  States  be,  and 
the  same  are  hereby,  re-enacted. 

SEC.  6.  That  the  payment  of  any  of  the  bonds  hereby  au- 
thorized, after  the  expiration  of  five  }*ears,  shall  be  made  in 
amounts  to  be  determined  from  time  to  time  by  the  Secretary 
of  the  Treasury,  at  his  discretion,  the  bonds  so  to  be  paid  to 
be  distinguished  and  described  b}'  the  dates  and  numbers,  be- 
ginning for  each  successive  payment  with  the  bonds  of  each 
class  last  dated  and  numbered  ;  of  the  time  of  which  intended 
payment  or  redemption  the  Secretary  of  the  Treasury  shall 
give  public  notice,  and  the  interest  on  the  particular  bonds  so 


300  VETOED   BILLS   AND   OTHER   DOCUMENTS.  [1881. 

selected  at  any  time  to  be  paid  shall  cease  at  the  expiration  of 
thirty  days  from  the  publication  of  such  notice. 

SEC.  7.  That  this  act  shall  be  known  as  "  The  funding  act 
of  eighteen  hundred  and  eighty-one  ; "  and  all  acts  and  parts 
of  acts  inconsistent  with  this  act  are  hereby  repealed. 

NOTE.  —  House  bill  No.  4592  of  1880-81,  having  been  presented  to  the 
President  of  the  United  States,  was  returned  by  him,  with  his  objections, 
to  the  House  of  Eepresentatives,  March  3,  1881,  and  did  not  become  a 
law. 


TABLE 

OF  ACTS,  RESOLUTIONS,  AND  DOCUMENTS,  PRINTED, 
ABRIDGED,  OR  DESCRIBED,  IN  THIS  VOLUME. 

For  convenience,  most  of  the  following  titles  are  much  abridged,  and 
in  case  of  complete  variance  from  the  original  they  are  bracketed. 


P  A  E  T    I. 

PAGE 

1789,  July     31,  Act  regulating  collection  of  duties  in  specie   .  7 
Sept'r    2,  Act  establishing  the  Treasury  Department     .  7 

1790,  Aug't    4,  Act  providing  for  the  public  debt      ....  10 
Aug't     5,  Act  for  settling  accounts  with  States     ...  18 
Aug't  12,  Act  providing  for  reduction  of  debt      ...  20 

1791,  Feb'y  25,  Act  incorporating  the  Bank  of  the   United 

States 22 

March  2,  Act  supplementary  to  the  Bank  act  ....  29 
March  3,  Act  [pledging  certain  revenues  for  interest 

and  reduction  of  debt] 30 

1792,  Jan'y  23,  Act  extending  time  for  settlement  with  States  20 
May       8,  Act  supplementary  to  act  providing  for  the 

debt      .     .     .     ; 18,32 

1794,  May     31,  Act  providing  for  interest  on  balances  due  to 

States 34 

1795,  Jan'y     2,  Act  for  transfer  of  stock  by  States   ....  35 
March    3,  Act  making  further  provision  for  credit  and 

redemption  of  debt 35 

1796,  April    28,  Act  in  addition  to  preceding , 42 

May     31,  Act  providing  for  payment  of  certain  debts    .  43 

1797,  March    3,  Act  for  receiving  stock  in  payment  for  lands  .  45 
March    3,  Act  extending  time  for  subscriptions  by  public 

creditors 18 

1798,  June     12,  Act  extending  time  for  loan  office  and  final 

settlement  certificates 45 


302         TABLE    OF   ACTS,    RESOLUTIONS,    AND   DOCUMENTS. 


PAGE 


1798,  July     16,  Act    to    enable    the    President    to    borrow 

$5,000,000 45 

July     16,  Act  authorizing  loan,  to  anticipate  direct  tax  46 

1799,  Feb'y  15,  Act  respecting  balances  due  by  States  ...  47 

1800,  May       7,  Act    to    enable    the    President    to    borrow 

$3,500,000 46 

May  10,  Act  providing  for  use  of  stock  in  payment  for 

lands 45 

May  10,  Act  [declaring  duties  of  Secretary  of  the 

Treasury] 48 

1802,  April   29,  Act  providing  for  redemption   of  whole  of 

public  debt 49 

1803,  Nov'r  10,  Act  creating  stock  for  Louisiana  purchase  .     .  52 

1806,  April    18,  Act  discontinuing  receipt  of  public  debt  for 

land 55 

1807,  Feb'y  11,  Act  [providing  for  exchange  of  stock]  ...  56 

1809,  March    3,  Act    [requiring    disbursing    agents   to    keep 

public  moneys  in  bank] 59 

June    28,  Act  [extending  powers  of  sinking  fund  to  all 

cases  of  reimbursement] 60 

1810,  May       1,  Act  authorizing  a  loan  for  sinking  fund     .     .  60 

1811,  March    2,  Act  authorizing  a  loan  of  $5,000,000     ...  62 

1812,  March  14,  Act  authorizing  a  loan  of  $11,000,000    ...  62 
March  19,  Act  repealing  tenth  section  of  United  States 

Bank  act 63 

June    30,  Act  authorizing  treasury  notes 63 

July       1,  Act  making  Louisiana  stock  transferable  .     .  53 

July       6,  Act  [providing  for  exchange  of  stocks]      .     .  66 

July       6,  Act  authorizing  agents  for  $11,000,000  loan    .  63 

1813,  Feb'y     8,  Act  authorizing  a  loan  of  $16,000,000   ...  67 

Feb'y  25,  Act  authorizing  treasury  notes 68 

Aug't    2,  Act  authorizing  a  loan  of  $7,500,000      ...  70 

1814,  March    4,  Act  authorizing  treasury  notes 70 

March  24,  Act  authorizing  a  loan  of  $25,000,000   ...  72 

Nov'r  15,  Act  authorizing  a  loan  of  $3,000,000     ...  72 

Dec'r    15,  Act  [pledging  revenues  for  sinking  fund]  .     .  74 

Dec'r   21,  Act  [pledging  revenues  for  sinking  fund]  .     .  75 
Dec'r   21,  Act    [authorizing    loan    in    anticipation    of 

duties] 75 


TABLE    OF   ACTS,    RESOLUTIONS,    AND    DOCUMENTS.  303 

PAGE 

1814,  Dee'r   23,  Act  [pledging  revenues  for  sinking  fund]  .     .  75 
Dec'r    26,  Act  [authorizing  treasury  notes]     ....  75 

1815,  Jan'y     9,  Act  [pledging  revenues  for  sinking  fund]     .  75 
Jan'y     9,  Act   [authorizing  loan  to   anticipate  direct 

tax] 75 

Jan'y   18,  Act  [pledging  revenues  for  sinking  fund]     .  75 

Jan'y   18,  Act  [pledging  revenues  for  sinking  fund]     .  75 

Feb'y  24,  Act  authorizing  treasury  notes 76 

March    3,  Act  authorizing  a  loan  of  $18,452,800  ...  79 

1816,  April    10,  Act  incorporating  the  Bank  of  the  United 

States 80 

April    30,  Resolution  relative  to  [use  of  legal  currency]  95 

1817,  March    3,  Act  transferring  duties  of  commissioners  of 

loans  to  the  Bank 95 

March  3,  Act  terminating  authority  for  loans  and 

treasury  notes 96 

March  3,  Act  providing  for  redemption  of  debt ...  97 

1818,  April    13,  Act  extending  time  for  loan  office  and  final 

settlement  certificates 100 

1819,  March    3,  Act  [relating  to  Bank  of  the  United  States]  94 

1820,  May      15,  Act  authorizing  a  loan  of  $3,000,000   ...  100 

1821,  March    3,  Act  authorizing  a  loan  of  §5,000,000  ...  101 

1822,  Feb'y   19,  Act  enabling  States  to  transfer  stock  ...  101 
April    20,  Act  authorizing  exchange  of  stocks      .     .     .  101 
May       3,  Act  limiting  receipt  of  treasury  notes  .     .     .  103 
May       7,  Act  extending  time  for  loan  office  and  final 

settlement  certificates 100 

1824,  Jan'y   22,  Act  authorizing  purchase  of  seven  per  cent. 

stock 103 

May     24,  Act  authorizing  stock  for  settlement  of  Span- 
ish claims     ..........  105 

May     26,  Act  authorizing  exchange  of  stocks     .     .     .  105 

1825,  March    3,  Act  authorizing  a  loan,  or  exchange  of  stock 

of  1813 106 

1830,  April  24,  Act  authorizing  redemption  or  purchase  of 

debt 107 

1832,  July  14,  Act  extending  time  for  loan  office  and  final 

settlement  certificates 100 

1834,  June  27,  Act  [as  to  payments  in  bank  notes]  .  .  .  108 


304         TABLE    OF   ACTS,    RESOLUTIONS,    AND   DOCUMENTS. 

PAGE 

1835,  March    3,  Act  [as  to  payments  in  bank  notes]     .     .     .  108 

1836,  April   11,  Act  repealing  transfer  of  duties  of  commis- 

sioners of  loans 109 

April  14,  Act  [as  to  payment  in  bank  notes]  .  .  .  110 

April  20,  Act  prescribing  mode  of  paying  pensions  .  109 
June  15,  Act  repealing  fourteenth  section  of  United 

States  Bank  act 110 

June  23,  Act  regulating  deposits  of  public  money  .  .  110 
June  23,  Act  respecting  government  stock  in  the 

United  States  Bank 116 

July  4,  Act  [suspending  the  sinking  fund]  .  .  .  117 

July  4,  Act  [respecting  transfers  of  public  money]  .  114 

1837,  March    3,  Resolution  for  settlement  with  the  United 

States  Bank 117 

Oct'r  2,  Act  postponing  further  deposits  with  the 

States 118 

Oct'r  12,  Act  authorizing  treasury  notes 118 

Oct'r  16,  Act  for  adjusting  claims  upon  deposit  banks  120 
Oct'r  16,  Act  for  settling  drafts  transferring  deposits 

to  States 122 

1838,  May     21,  Act  authorizing  treasury  notes 122 

May     31,  Resolution  relating  to  money  used  in  pay- 
ment of  revenue 122 

July  5,  Act  [as  to  receipt  of  bank  notes]  ....  116 
July  7,  Act  authorizing  sale  of  bonds  of  the  Bank  of 

the  United  States 123 

July       7,  Act  forbidding  issue  of  notes  of  expired  cor- 
porations    124 

1839,  March    2,  Act  authorizing  treasury  notes 124 

1840,  March  31,  Act  authorizing  treasury  notes  .....  125 
July       4,  Act  [establishing  the  Independent  Treasury]  125 

1841,  Feb'y  15,  Act  authorizing  treasury  notes 130 

July     21,  Act  authorizing  a  loan  of  $12,000,000.     .     .  131 

Aug't  13,  Act  repealing  [the  Independent  Treasury  act]  132 

1842,  Jan'y  31,  Act  authorizing  treasury  notes 132 

April    15,  Act  extending  the  loan  act  of  1841 ....  133 
Aug't  31,  Act  concerning  sale  of  stock  and  authorizing 

treasury  notes 135 

1843,  March    3,  Act  for  reissue  and  funding  of  treasury  notes  136 


TABLE   OF   ACTS,    RESOLUTIONS,    AND    DOCUMENTS.         305 


PACE 


1846,  July     22,  Act  authorizing  treasury  notes  and  a  loan,  in 

all  $10,000,000 137 

Aug't     6,  Act  for  the  Organization  of  the  Treasury     .  138 

1847,  Jan'y  28,  Act  authorizing  treasury  notes  and  a  loan,  in 

all  S23,000,000 142 

1848,  March  31,  Act  authorizing  a  loan  of  $16.000,000 .     .     .147 

1849,  March    3,  Act  [repealing  limit  to  be  paid  for  stock]     .  146 

1850,  Sep't      9,  Act  [for  payment  of  $10,000,000  to  Texas  in 

stock] 148 

1853,  March    3,  Act  [authorizing  payment  of  market  price 

for  stock] 149 

1857,  Dec'r   23,  Act  authorizing  treasury  notes 149 

1858,  June     14,  Act  authorizing  a  loan  of  $20,000,000 ...  151 

1859,  March    3,  Act  continuing  issue  of  treasury  notes     .     .  151 

1860,  June    22,  Act  authorizing  a  loan  of  $21,000,000  to  fund 

treasury  notes 152 


P  A  E  T    II. 

1860,  Dec'r   17,  Act  authorizing  treasury  notes 155 

1861,  Feb'y     8,  Act  authorizing  a  loan  of  $25,000,000 .     .     .  157 
March    2,  Act  authorizing  a  loan  of  $10,000;000  or  issue 

of  treasury  notes 158 

July      17,  Act  authorizing  a  national  loan 160 

Aug't     5,  Act  supplementary  to  act  of  July  17    ...  162 

1862,  Feb'y  12,  Act  authorizing  further  issue  of  notes  .     .     .  163 
Feb'y  25,  Act  [for  issue   of  legal  tender  notes   and 

$500,000,000  of  bonds] 163 

March  1,  Act  authorizing  certificates  of  indebtedness  .  166 
March  17,  Act  [as  to  purchase  of  coin,  use  of  demand 

notes,  and  temporary  deposits]  ....  166 

July  11,  Act  [for  second  issue  of  legal  tender  notes]  .  167 

July  17,  Act  authorizing  payments  in  stamps  .  .  .  169 

1863,  Jan'y  17,  Resolution  [for  issue  of  legal  tender  notes]  .  170 
Feb'y  25,  Act  to  provide  a  national  bank  currency .     .  171 
March    3,  Act  [for  loan  of  $900,000,000  and  third  issue 

of  legal  tender  notes] 173 

20 


306         TABLE    OF   ACTS,    RESOLUTIONS,    AND    DOCUMENTS. 


PAGE 


1863,  March   3,  Act  [prohibiting  loans  upon  coin  for  more 

than  its  par  value] 176 

1864,  March    3,  Act  authorizing  loan  of  $200,000,000  ...  177 
March  17,  Resolution  for  prepayment  of  interest  and 

.  sale  of  gold 178 

June      3,  Act  to  provide  a  national  bank  currency .     .  178 

June     17,  Act  prohibiting  certain  sales  of  gold   .     .     .  191 

July       2,  Act  repealing  act  of  June  17 193 

June    30,  Act  providing  ways  and  means  [and  loan  of 

$400,000,000] 193 

1865,  Jan'y  28,  Act  [authorizing  treasury  notes  instead  of 

bonds] 196 

March  3,  Act  providing  ways  and  means  [and  loan  of 

$600,000,000] 196 

March  3,  Act  [relating  to  bank  notes  and  State  banks]  198 

March  3,  Act  amending  national  bank  currency  act  .  199 

1866,  April    12,  Act  [limiting  the  reduction  of  currency]  .     .  199 

1867,  March    2,  Act  for  payment  of  compound  interest  notes  200 

1868,  Feb'y    4,  Act  suspending  reduction  of  currency .     .     .  201 
July     25,  Act  for  payment  of  compound  interest  notes  201 

1869,  Feb'y  19,  Act  forbidding  banks  to  lend  upon  United 

States  notes 201 

March    3,  Act  providing  for  reports  by  banks     .     .     .  186 

March  18,  Act  to  strengthen  public  credit 202 

1870,  July     12,  Act  for  increase  of  bank  notes  [and  gold 

banks] 202 

July  14,  Act  for  refunding  national  debt  ....  205 
July  14,  Act  for  retirement  of  notes  by  banks  in 

liquidation 208 

1871,  Jan'y   20,  Act  [increasing  amount  of  five  per  cent. 

funding  bonds] 206 

1872,  June      8,  Act  [for  certificates  of  deposit] 209 

1873,  March    3,  Act  [restricting  use  of  word  "national"  by 

banks] 190 

Dec'r    17,  Act  for  payment  of  loan  of  1858     ....  206 

1874,  June    20,  Act  [for  redemption  and  redistribution  of 

bank  currency  and  other  purposes]     .     .  210 

1875,  Jan'y   14,  Act  for  resumption  of  specie  payments    .     .  214 
Jan'y  19,  Act  concerning  notes  of  gold  banks    .    .     .  216 


TABLE    OF   ACTS,    RESOLUTIONS,    AND   DOCUMENTS.  307 

PAGE 

1875,  March    3,  Act  authorizing  calling  of  bonds  for  sinking 

fund 216 

1878,  May     31,  Act  forbidding  retirement  of  legal  tender 

notes 217 

1879,  Jan'y  25,  Act  to  facilitate  refunding 217 

Feb'y  26,  Act  authorizing  certificates  for  refunding    .  218 

1880,  Feb'y  14,  Act  authorizing  conversion  of  gold  banks     .  218 

1 881,  March    3,  Act  [authorizing  purchase  of  bonds]   .     .     .  219 

1882,  July     12,  Act  to  extend  existence  of  national  banks    .  219 

1883,  March    3,  Act  [reducing  taxes  on  banks] 224 

1886,  May       1,  Act  [concerning  capital,  name,  and  location 

of  banks] 224 

July     30,  Act  [allowing  Territories  to  establish  banks]  224 

1887,  March    3,  Act  concerning  reserve  cities   and  central 

reserve  cities 224 

1890,  July     14,  Act  for  purchase  of  silver  bullion  and  issue 

of  notes  thereon 226 


PAET    III. 

1789,  July     31,  Act  for  collection  of  duties 227 

1790,  Aug't     4,  Act  for  collection  of  duties 227,  230 

1792,  April     2,  Act  establishing  a  Mint  and  regulating  the 

coinage 227 

1793,  Feb'y     9,  Act  regulating  foreign  coins 229 

1797,  July     22,  Proclamation  that  the  Mint  is  open     .     .     .  230 

1798,  Feb'y     1,  Act  regulating  foreign  coins 230 

1799,  March    2,  Act  for  collection  of  duties 230 

1802,  April    30,  Act  regulating  foreign  coins 231 

1806,  April   10,  Act  regulating  foreign  coins 231 

1816,  April  29,  Act    regulating    certain    foreign    gold    and 

silver  coins 231 

1819,  March    3,  Act  [continuing  the  same  in  force]      .     .     .  232 
1 821,  March    3,  Act  regulating  certain  foreign  silver  coins    .  232 
1823,  March    3,  Act  [continuing  the  same  in  force]      .     .     .  232 
March    3,  Act  making  certain  foreign  gold  coins  receiv- 
able for  public  lands 232 


308         TABLE    OF   ACTS,    RESOLUTIONS,    AND    DOCUMENTS. 

PAGE 

1828,  May     19,  Act  [providing  for  standard  troy  pound]  .     .  232 

1832,  July     14,  Act  [fixing  the  value  of  the  pound  sterling]  244 

1834,  June    25,  Act  regulating  certain  foreign  silver  coins    .  233 
1834,  June    28,  Act  concerning  the  gold  coins  of  the  United 

States 234 

June    28,  Act  regulating  certain  foreign  gold  coins      .  234 
1837,  Jan'y  18,  Act  [regulating  the  standard  and  weight  of 

coins] 235 

1842,  July     27,  Act  fixing  the  value  of  the  pound  sterling    .  244 

1843,  March    3,  Act  regulating  foreign  gold  and  silver  coins  .  236 

1849,  March    3,  Act  for  coining  gold  dollars  and  double  eagles  237 

1850,  May     23,  Act   [providing  for    advances  of  coin    for 

bullion] 237 

1853,  Feb'y  21,  Act  [providing  for  the  subsidiary  silver  coins]  238 

March    3,  Act  [providing  for  an  Assay  office].     .     .     .  239 

1857,  Feb'y  21,  Act  relating  to  foreign  coins 240 

1873,  Feb'y  12,  Act  revising  laws  relating  to    mints    and 

coinage 241 

March    3,  Act  fixing  value  of  the  pound  sterling  and 

par  of  exchange 243 

1874,  June    22,  Revised  Statutes  concerning  legal  tender .     .  244 
June    22,  Act  authorizing  exchange  of  gold  bars  for 

coin 245 

1875,  Jan'y  14,  Act  for  resumption  of  specie  payments     .     .  245 
March    3,  Act  providing  for  coinage  of  a  twenty-cent  piece  243 

1876,  July     22,  Resolution  for  the  issue  of  silver  coin  .     .     245  bis 
1S78,  Feb'y  28,  Act  for  coining  the  standard  silver  dollar  245,246 

May       2,  Act  discontinuing  coinage  of  the  twenty-cent 

piece 243 

1879,  June      9,  Act  concerning  subsidiary  coins .     .     .     .     .  248 
June     21,  Act   [concerning   redemption   of    fractional 

currency] 246 

1882,  May     26,  Act  for  issue  of  gold  bars  in  exchange  for  coin  249 

1886,  Aug't     4,  Act  [providing  for  silver  certificates  in  small 

denominations] 248 

1887,  Feb'y  29,   Act  for  retiring  the  trade-dollar     ....  249 

1890,  July     14,  Act  for  purchase  of  silver  bullion    ....  250 
Sep'r    26,  Act  to  discontinue  coinage  of  three-dollar, 

one-dollar,  and  three-cent  pieces    .     .     .  252 

1891,  March    3,  Act  [as  to  gold  bars  exchanged  for  coin]      .  252a 


TABLE    OF   ACTS,    RESOLUTIONS,    AND    DOCUMENTS.         309 


PART    IV. 

PAGE 

1785,  July       6,  Resolves  respecting  coinage 253 

1786,  Aug't     8,  Resolves  respecting  coinage 253 

1787,  May       7,  Ordinance  for  accounting  with  the  States     .  255 
1815,  Jan'y   30,  Vetoed  bill  for  a  United  States  Bank  .     .     .  257 
1817,  Feb'y     1,  Agreement  for  Specie  Resumption      .     .     .  264 
1832,  July     10,  Vetoed  bill  for  the  United  States  Bank    .     .  266 

1836,  July     11,  Specie  Circular 270 

1837,  March    3,  Bill  to  rescind  the  Specie  Circular  ....  271 
1841,  Aug't   16,  Vetoed  bill  for  a  Fiscal  Bank 272 

Sept'r     9,  Vetoed  bill  for  a  Fiscal  Corporation    ...  288 

1868,  July     27,  Bill  for  refunding  the  national  debt    ...  294 

1874,  April    22,  Vetoed  currency  bill 295 

1881,  March    3,  Vetoed  bill  for  refunding  the  national  debt .  296 


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